Serving the Greater Denver Metro Area
Here is an overview of the role of the HUD Consultant and the 203(k) loan .
Consultant meets with the borrower at the site.
A general examination of the work to be done determines if the project is feasible. This examination will include the Minimum Property Standards (MPS) inspection that FHA will require to be repaired as a condition for the loan as well as the additional work the borrower desires to have done.
Client signs Consultant Agreement and pays the MPS inspection fee.
II. Consultant prepares a detailed Preliminary Work Write-Up which contains:
Clear, concise project specifications
Construction cost analysis
HUD required draw request forms
Preparation of contractor bid packages
Preparation of lender packages
III. Consultant delivers the Work Write-Up Packages
IV. Selection of a Contractor by the Borrower
The Borrower selects a 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 203(k), it is important that they are informed early on about the 203(k) concept as it applies to contractors.
Virginia uses class A and B contractors
V. Loan Closes
Repair funds are placed in escrow.
VI. Consultant Performs Draw Request Inspections
1st Draw - 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.
|Major Component Only Evaluation|
|First time home buyer|
|Structural Elevation Survey|
|What is a 203k|
|How does a 203k work?|
|203k Consultant's Responsibility|
|Limited aka Streamline 203k|
|FHA Q and A|