FHA 203k - using my dad as general contractor

[Nicolas Yopp]

Hello all,

We put in an offer on a house, haven't heard back yet and we should know by tomorrow. We are trying to get the ball rolling and get our contractors set up for bids if they accept our offer.  I'm planning on typing up the estimates and give them to our general contractor friends and they can type it up in their own words and numbers.  This house is in Redmond, Oregon.  I've always worked in construction with my dad growing up and the last 6 years was full time with him after I finish college.  Anyways, back to my question - is it possible to use my dad as the general contractor for the 203k?  I'm plan on doing all the work myself with my fiancee.  My dad has been the general contractor for some high end homes the last 25 years and I find it silly that 203k requirements states that you can't use family members as the general contractor even tho we are in the field ourselves?  I actually have my own specialty license - it was just expired so I will need to renew it.  

Your thoughts for alternatives?  I have several general contractors friends that I can use, but don't want to burden them with a lot of paper work I would assume?

[Chris Mason]

Originally posted by @Derek Carroll:

Charlie Fitzgerald Nicolas Yopp I'm not sure that is true unless the regulations have changed. I know first hand of someone who used their father in law as the contractor to save money.

 You are correct, two things are at play here:

1) Individual lenders might have a list of "preapproved CGs" that they like to work with, but this is NOT an FHA requirement any more than your realtor's list of "approved lenders" is actually a requirement of the National Association of Realtors. You can pick any CG, or lender for that matter, that has all the licensing, insurance, etc, in place and that wants to play ball. (NOTE: "this is my first 203k deal!" GCs need to be REALLY willing to play ball and understand that there is going to be some sh-t that is new/unusual to them, that they need to go ahead and go with.)

2) Father IN LAW, and you are male. So on paper nothing to make it obvious that he was family. This slid by underwriting without notice. No common surname or mailing address, etc, to tip anyone off. Believe it or not, mortgage companies do not have a massive database of everyone's family tree.