Questions About Delayed Financing

[Jason Bohling]

Got a couple questions about the rehab portion on the HUD in a delayed financing scenario and how it would affect the subsequent cash-out refi that hopefully y'all can help me understand:

1) does the work have to be performed by a contractor (similar to how an FHA 203k loan requires this) or can you do it yourself,

2) does the scope of work have to be line-item’ed or is it just a bulk amount for the whole shebang,

3) in the event that the sun, stars and the moon all aligned and Mercury just happens to be in retrograde in the rehab actually came in under budget (say, $30k put on the HUD for the rehab and it came in at $25k all said and done), is the excess amount returned or just what happens in that scenario?

4) or, when you go to do the refi and pull your money out, does the bank doing the refi even care about any of this, i.e. ‘if it's on the HUD, then it's on the HUD' and that's all that matters?

Thanks in advance for the knowledge!