203k loan rehab n Middletown CT

[Khalid Ellis]

Hi biggerpockets


I’m in Middletown CT and looking for the following:

Realtor who specializes in 203 k Loan 

Lenders who specialize in 203 k Loan

Contractor who specialize in 203k Loan

your information is appreciated 

Thank u

[Paul Welden]

@Khalid Ellis

Hi Khalid! 

Very smart to start assembling your 203k Team, which will consist of the REALTOR, lender, 203k Consultant, and contractor.

REALTOR needs to not be afraid of the 203k and excited to use it. There is specific verbiage HUD requires in the purchase contract to protect the borrower and disclose some of the 203k contingencies to the seller. Reference HUD SFH 4000.1

Lender needs to have experience with the 203k. In the CE REALTOR classes I teach on the 203k, I always use the example that the lender is like the quarterback. The need to know the rules, guidelines, paperwork, processes, etc. If they don't know what they are doing and don't have 203k experience, your 203k process will usually resemble the Cleveland Browns on a Sunday afternoon. So, make sure you verify the lender's 203k experience. HUD has 2 databases of 203k lenders that can help give you a good start. Reference HUD SFH 4000.1

203k Consultant is required to be selected by your lender. So, it's very, very important to work with a 203k-experienced lender.
Reference HUD SFH 4000.1

Contractor need to know and understand the 203k. The contractor needs to either be properly educated on the 203k or have verifiable experience with the 203k. While any licensed, insured, and bonded contractor is allowed to do the work, without 203k education or 203k experience, the contractor won't know the different versions of the 203k, timelines, guidelines, bid/estimate format, payment process, etc. and will be basically winging it. I recommend and use contractors that have the accreditation as a Certified 203k Contractor. They've all been properly educated on the 203k, had their 203k experience independently verified, and had their financials vetted to ensure they can pay for the start up costs and ongoing expenses associated with rehab loans. 

You're only as strong as your weakest link ... select your partners wisely.

Hope this helps!