HUD/FHA 203(k) CONSULTATIONS
What is a 203(k) Loan?
The FHA 203(k) loan enables the home buyer to obtain funds for a purchase and renovations all in one loan.
One loan to pay for the purchase and renovating of the home
Finance up to six months of mortgage payments
FHA Standard Guidelines
1 to 4 unit dwelling
Create the dream house you want
Low scores and low down payments acceptable
Key strategy in today’s real estate market
The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair either the home that they currently live in, or that special fixer-upper opportunity.
The FHA 203(k) program has already provided many buyers with the funds necessary to buy their first home, or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.
What We Do
The 203(k) Consultant works as part of a team with the home buyer and the mortgage lender to make the program work efficiently. Consultant fees are set by HUD and must be paid at the time of service.
Feasibility Study-an inspection that estimates the cost of repairs and improvements
203(k) Work Write-Ups- a written report that provides detailed descriptions of repairs and estimated costs along with contractor bid specifications and other necessary documentation for the rehab portion of the loan.
After settlement, repair funds are placed in escrow, remodeling begins the consultant inspects the work of the contractor and authorizes the release of the mortgage funds.
203(k) Consultant Responsibilities
Determine requirements under FHA guidelines and provide cost/feasibility analysis
Complete a Specification of Repairs which includes 35 point report of material and labor. Address health and hazard issues in accordance with FHA guidelines and any additional work such as upgrades, additions, handicap accessibility, ect.
Inspect and prepare draw requests
Prepare and submit change orders
Review contractors work to ensure quality and specifications are followed
Construction Draw Inspections
We can work with your lender and perform Construction Draw Inspections to ensure timely payouts on your construction loan. If needed Prairie State Inspections Inc. can assist in finding construction lending for both new construction and rehab lending needs. We work with a number of lenders for both types of construction loans. Give us a call and we will be glad to assist.Sample Draw Request