The role of the 203k Consultant is vital to the success of a FHA full 203k loan. The consultant is responsible for the onsite visit and the HUD work write up and is responsible for staying on during the project to facilitate draws and inspections.
The overall objective/responsibility of the 203k HUD Consultant will be to insure HUD’s minimum property standards are met. In the work write up the consultant will cover the required repairs that will need to be done to the property. Also, the consultant will make any recommendations for work that should be done. Then finally it will include desired work that the borrower would like to include.
I often get asked what role does the 203k Consultant play in the FHA Full 203k loan. This is a great question and one we will explore further in this article.
The role of the 203k Consultant is vital to the success of an FHA full 203k loan. The consultant is responsible for the onsite visit and the HUD work write up and is responsible for staying on during the project to facilitate draws and inspections. I like to think of this person as your own mini “project manager” and it adds a nice layer of comfort to the project. It is especially important that you and your consultant always have excellent communication. Let us break down the responsibilities of the consultant in detail:
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 are considering a contractor which has not yet been approved by your lender or has never done an FHA 203k project, it is important that they are informed early on about the FHA 203k concept as it applies to contractors.