203K Consultant | If you are planning to buy a fixer-upper, or make improvements to your existing home, you may want to consider talking to a 203k consultant about the FHA 203k Construction Loan. The 203k loan allows borrowers to combine their regular mortgage with a construction or renovation loan. This reduces the loan closing costs and simplifies the home renovation process.
There are two types of 203k loans: the Standard 203k and the Streamlined 203k loan.
The Standard 203k loan is for projects requiring structural changes to homes and have a minimum of $5,000.00 and a maximum amount of $271,500. This is most often obtained for the following projects: the relocation of load-bearing walls, adding new rooms to a home, landscaping of a property, and repairing structural damage to a home.
The Streamlined 203k loan is for smaller, more cosmetic home improvement projects with costs up to $31,600.00. Examples of projects done with this type of loan are HVAC or roof repair or replacement; home accessibility improvements for disabled persons; minor remodeling and basement finishing, which don’t not require structural repair; exterior patio or porch addition, repair, or replacement; window and siding replacement; interior and exterior painting; and home weatherization.
A 203k consultant from Beryl Engineering and Inspection will help borrowers through the whole process. They meet with borrowers at the site to help determine the needed repairs, help assess the costs of the repairs, and help prepare contractor bid packages lender packages. Then the 203k consultant advises the borrower on the selection of the contractor for the repair project. Once the loan closes, the Beryl consultant insures that the needed permits are issued, performs inspections as work progresses, creates a punch list, and closes the project making sure warranties and lien releases are collected.