203K Consultant Services
The 203k Consultant’s Role
The 203k Consultant’s role is to:
Review the contractor’s estimates to determine if they are within market norms
Ensure that all required repairs are completed.
Ensure that the work scope includes all FHA/HUD requirements
Help determine if the clients wish list is within budget
perform an initial property inspection. (If the homeowner is unfamiliar with repairs required by FHA guidelines, they should involve the Consultant as soon as possible.)
obtaining signed Lien Waivers during draw inspections,
Consultant will request that the contractor correct any issue prior to payment.
To verify consultant status (Click Here)
Teaming up with a FHA 203k Consultant
With the amount of moving parts involved in successfully closing a 203k loan on time, the designated 203k Loan Consultant is a key player on your Rehab Loan Team. Client should enter into a formal consultant agreement as soon as possible. The agreement should detail the roles of all parties and how fees are to be determined.
If you a teacher, firefighter, policeman or other service related field? There is a 203K program designed to allow you to purchase of a home for 50% off the listed price. It’s called the Good Neighbor Next Door Program, (GNDP). See this link for details.
Our consultant fees follow the HUD guidelines and is based on the renovation budget as follows:
- $400 for the repairs between $5,000 to $7,500.
- $500 for the repairs between $7,501 to $15,000
- $600 for the repairs between $15,001 to $30,000
- $700 for the repairs between $30,001 to $50,000,
- $800 for the repairs between 50,001 to $75,000.
- $900 for work costs between $75,001 to $100,000
- $1,000 where the renovation work to be undertaken exceeds $100,000
The above mentioned FHA 203k consultant fees are for single family residential homes. For multi-family homes, the fee charged may be higher. Typically, it would be an additional $50 for each unit beyond the 1st one. A $300 deposit (to be applied to the final invoice) is required on all 203K consultant contracts.