203k & contractor question

[Christine Glasner]

I hope I'm putting this in the right forum. My husband & I looked at a house this weekend that we are very interested in for ourselves. It needs work and we would like to do a 203k loan. I asked a contractor I know if he could come out and look at it and give a cost estimate. He said he would but he is not a licensed contractor and doesn't think he will be allowed to do the work after it's purchased.

I went to the HUD site and couldn't find anywhere where it requires this. Did I miss it? My friend does a lot of rehab work for the bank foreclosures, but says he hasn't been able to do the work for the new owners and I should double check on the requirements. He has given the name of another licensed contractor in case I can't use him.

It does say homeowners can do work themselves. My friend does have a licensed electrician that he uses and someone for AC & plumbing. What is your experience with this type of loan and who can do the work?

Thanks so much for the input!

[Wayne Brooks]

If you use a licensed and insured contractor, they don't have to be "203k" certified, as FHA doesn't have a contractor certification. That is a "private" certification, where you take a course, that is probably helpful, but not required by FHA.