203k Consultant | When you use an FHA 203k renovation loan, you need a HUD designated 203k consultant to complete the work write-up and cost estimate. Our job is to ensure that construction estimates are accurate and that all FHA minimum standards are being met before the contractors are paid.
Before Loan Closes
Your 203k consultant will meet with you at the site. We’ll conduct an inspection and a feasibility study. We’ll discuss with you the mandatory repairs and any additional work you’d like to have done. We’ll put together a “Specification of Repairs” report and “Scope of Work” packages, including detailed project specifications and construction cost analysis. We’ll complete lender required paperwork to move the loan process forward.
Then, you’ll get bids from contractors who meet your lender’s qualification criteria. We can make recommendations. Once you choose a contractor, we’ll send the completed renovation plan to your lender.
The FHA requires that all 203k projects be completed in six months or less, so construction should begin immediately. Our job focus shifts from planning to making sure the work is done right. Repair funds will be placed in escrow. Your consultant will complete five draw requests so the general contractor can be paid as the work progresses.
We’ll make the first draw request immediately after determining the contractor has obtained the necessary construction permits. Once work begins, we’ll perform inspections before issuing the second and third draw requests. At the fourth draw, we’ll work with you and the contractor to establish a written, detailed punch list of all items still needing attention.
When Work is Done
When the project is completed, we’ll inspect your home to make sure all items on the punch list have been addressed. Only then will we make the final draw request a