Buy and Fix Your Dream Home
Beryl as your 203k Consultant is an integral part of a successful 203k loan transaction. The role of Beryl as your 203k Consultant is vital to the timely completion and closure of 203k Loan applications. Accurate estimating and rapid turnaround time are qualities that will assist both borrower and lender in achieving their mutual goal of a timely closing. The following is included in the Beryl 203k Consultant Rehabilitation Loan Consultant Process by choosing Beryl as your 203k Consultant.
I. Site Visit with Beryl’s 203k Inspectors
- 203k Consultant meets with the borrower at the site.
- A general examination of the work to be done determines if the project is feasible.
- Feasibility comes through a comprehensive Feasibility report stating the Mandatory, Recommended, and Desired Repairs
II. 203k Consultant prepares a detailed Performance Specifications Scope of Work which contains:
- Clear, concise project specifications
- Construction cost analysis
- Preparation of contractor bid packages
- Preparation of lender packages
III. Scope of Work Packages by Beryl’s 203k inspector are sent to the:
IV. Selection of a Contractor by the Borrower
- The Borrower selects a contractor. While Beryl’s 203k Consultant Inspectors have contacts with several vetted Contractors available for the Borrower, the Borrower ultimately selects the contractor. Borrowers should be aware that many lenders may have contractor qualification criteria. Some lenders maintain a list of contractors that have met their qualification criteria. Discuss contractor selection with your lender to learn about their contractor requirements. If you’re considering a contractor which has not yet been approved by your lender or has never done a 203k rehabilitation, it is important that they are informed early on about the 203k rehabilitation concept as it applies to contractors.
V. Loan Closes
- Repair funds are placed in escrow.
- Remodeling begins.
VI. Beryl’s 203k Inspector Performs Draw Request Inspections
- 1st Draw – 203k Consultant insures permits were issued.
- 2nd and 3rd Draw – Draw request inspections are performed as work progresses.
- 4th Draw – A punch list is established.
- 5th Draw – The project is closed out and warranties and lien releases collected.
To see how the process is different for a Streamlined 203k Loan and how Beryl’s Streamlined 203k Inspectors can help you, click here.
Note: Beryl is not acting on behalf or at the discretion of HUD/FHA or Fannie Mae or the Federal government. Beryl is an independent consultant.
Information on this website was obtained from the HUD FHD 203k Loan website. http://portal.hud.gov/hudportal/HUD