203K Contractors South Texas

[Robert Johnson]

Hey guys,

I am really excited to say I have just got a 4 plex under contract in McAllen TX that I am planning on house hacking with and FHA 203k loan. I am looking for any recommendations on contractors in the McAllen, Mission, Edinburg area of the Rio Grade Valley that are familiar with the 203k loan program? I know already that the big issue is going to be replacing the roof of the property, but pending inspection I might need a whole team to help bring this property up to snuff. Thanks in advance!

[Paul Welden]

@Robert Johnson

I recommend working with contractors who have the designation as a like @Steeve Gauthier said. 

Just remember that the contractor does not necessarily set the scope of work or price for the 203k project. That's done by the HUD approved FHA 203k Consultant who is actually required to be selected by your lender.

The 203k Consultant is required to develop for SOR/WWU + cost estimate without the assistance of a contractor. Then that report can be sent to the contractor(s) to see if they can do the project. 

Sometimes, the contractor pricing may differ from the SOR/WWU and if that happens, then you and the consultant and the contractor will have to have a meeting to get everyone on the same page, because before your loan closes, all the numbers/pricing have to match up and be identical. 

Don't forget about the FHA Stress Test (self sufficiency) required on 3-4 unit properties and the cool benefit that you can use 75% of the market rent for the other 3 units as income if you need it to help qualify for the mortgage.

Congrats on getting the 4-plex under contract!