The Consultant and the Work Write-up

The Consultant and the Work Write-up

The most critical component of this loan is the FHA 203 k Mortgage Consultant. A 203 k Consultant is someone who has been designated by HUD for the purpose of completing the Work Write Up/Cost Estimate and the required architectural exhibits for borrower. A 203k Consultant is typically a General Contractor with at least 3 years of experience, and may also be a home inspector, State Certified Engineer or Architect. The Consultant will indicate the fair market value for the desired and mandatory work that needs to be done on the home. The Consultant protects the borrower and the lender from up charging by contractors and protects the lender by ensuring the home is up to the FHA standards. The Consultant is involved in the process from the beginning and oversees the work of the contract, the draw process and every aspect of the rehabilitation loan to protect the buyer and the lender.

203 k For a New Purchase

203 k For a New Purchase

For a new purchase, one of the benefits is that a buyer can obtain one loan for the purchase price and the cost of repairs for as little as 3.5% down on the home. This product is great for bank owned properties that may not be in good condition. We often see REO homes with various damages including water damage due to incorrect weatherization, roof damage, kitchens missing, boarded up windows and mold damage. Many consumers believe that purchasing a home in “As is Condition” will prevent them from obtaining financing, but 203k Rehabilitation Loans allow for the property to be purchased in “As is Condition” – this gives the buyer an opportunity to rehab the home in the manner that they would like. With every buyer looking for the “best deal” or “below market purchase”, these homes often scream “FHA 203k Rehabilitation Loan.”

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