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Updated almost 8 years ago on . Most recent reply

User Stats

241
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135
Votes
Redgy Saint-Germain
  • Rental Property Investor
  • Boston, MA
135
Votes |
241
Posts

On a 203k loan is it common to ask the contractor for receipts?

Redgy Saint-Germain
  • Rental Property Investor
  • Boston, MA
Posted

I would like to compare projected materials cost vs actual cost for my current 203k renovation to aid me with my future offers and estimating ARVs. I feel nervous about asking my contractor for receipts because I wouldnt him to think I don't trust him but I also need to make sure the budget is well spent. 

Am I overthinking this ?

Redgy

Most Popular Reply

User Stats

10
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3
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Bryan Johnson
  • Lender
  • Scottsdale, AZ
3
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10
Posts
Bryan Johnson
  • Lender
  • Scottsdale, AZ
Replied

Types of FHA Repairs That Must be Completed Prior to Closing an FHA Loan


Peeling paint in homes built before 1978.
Unpainted downspouts and broken rain gutters.
Rotting out-building in need of demolition.
Exterior doors that do not properly close and open.
Exposed wiring and uncovered junction boxes.
Major plumbing issues and leaks.
Inoperable HVAC systems.
Leaky or defective roofs, roofs with a life expectancy of less than 3 years, composition over shake.
Active and visible pest infestation.
Rotting window sills, eaves, and support columns on a porch.
Missing appliances that usually are sold with a home such as a stove.
Bedrooms without minimize-sized windows or bedroom windows with bars that do not release.
Foundation or structural defects.
Wet basements.
Evidence of standing water in the crawl space.
Inoperable kitchen appliances.
Empty swimming pools, pools without a working pump and pools with mosquito fish.
Ripped screens.
No pressure relief valve on water heater.
Leaning / broken fence.  

I'm assuming the 26k all related to the above?  

If you have a consultant involved, I wouldn't worry too much. If something odd happens, absolutely ask. But you had to review the bid (which broke out materials/labors) before you accepted it. Research cost then. 203ks are hard enough for contractors, especially if they don't do it often. 

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