All Forum Posts by: Paul Welden

@Vince Coleman

Best advice is to organize the most qualified 203k Team possible. This includes the Lender, Contractor, & Realtor. 

Lender - need to have verifiable 203k experience. The 203k lender controls the process, calls the shots, and manages the paperwork, funds the loan, selects the 203k Consultant, etc.

Contractor - any licensed, bonded, insured contractor is allowed to do the work, but that doesn't mean they know the different versions of the 203k , familiar with the unique 203k paperwork, processes, timelines, compensation structure, nuances, etc. Best to use a contractor who has been properly educated on the 203k, has sufficiently strong financials to pay for the startup costs and ongoing expenses for the 203k project. There is an accreditation called Certified 203k Contractor that verifies all that for you. 

Realtor - need one who is not afraid of the 203k, can identify properties where the 203k can be used, and who can write the offer paperwork properly according to HUD guidelines.

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

Hope this helps!

@Nicole Ferrara

Here is the list of Certified 203k Contractors

Here is the FHA Lender List Search ... Just make sure to check the box at the bottom next to '203k'

Here is the 203k Endorsement Summary Reports (lists 203k lenders by city/region)

Your lender is required by FHA rules to select the 203k Consultant .... no need to search for one when your lender is responsible to select them for you.

Let me know if you would like assistance using any of these databases. 

Hope this helps!

@Caroline Gerardo

The 1.75% MI you referenced is the one-time upfront fee. 

The monthly MI payment is 0.55% of the loan amount for most borrowers, which can never be eliminated unless the loan is refinanced or the property is sold. 

Also, the $35k max for rehab is only for the Limited 203k, whereas the Standard 203k can go almost up to $2M .... crazy! 

Hope this helps! 

@Alex Collins

The FHA 203k is not permitted to be used for new builds. It can only be used to remodel homes that have already been built and have a certificate of occupancy or move an existing built home to another piece of land.

May want to look at the FHA Construction to Perm option.

Hope this helps! 

@Daniel Netzer

Are you referring to the FHA 203k Rehabilitation Loan or the FHA Construction-To-Perm Loan?

Asking because the 203k is NOT for construction .... only for rehab of existing properties and want to provide you with correct information. 

By the way, there is a database of Certified 203k Contractors. 

Hope this helps!  

To get the lender list from HUD, you'd have to go to HUD.gov and search for them (not easy to find them).

@Pierre E.

Yes I do. 

HUD has 2 databases on their website where you can search for the lenders with the most 203k experience.

You can also contact all the Certified 203k Contractors in your area and ask them which lenders they recommend. 

Hope this helps!

@Robert Fry

The 203k is a great loan, as long as you can assemble an excellent "203k Team" which consists of an lender with verifiable 203k experience, Realtor who's not afraid of the 203k, and a contractor who knows and understand the nuances of the 203k, such as a Certified 203k Contractor. 

Allow for 45-60 days to close a 203k. Try to get 14-15 day inspection period to get the 203k Consultant inspection and WWU (work write-up report) and the Certified 203k Contractor estimate.

For your offer to the seller, use a cover sheet that explains the benefits the seller will receive by accepting your FHA 203k offer.

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

The 203k is a great way to get a good deal on a property and remodel it to make it "your home" 

Hope this helps!

@Matt Liu

the 203k is a rehab loan, which means that if you are building a new home, there's actually nothing to rehab. The 203k cannot be used to build a new home, but it can be used to move an existing home to your new land location. 

@Charlene Gay

Definitely recommend using a Certified 203k Contractor. They have been properly educated on the 203k guidelines, processes, timelines, paperwork and have also been financially vetted to ensure they can afford the startup costs and ongoing expenses they have to pay for on 203k projects. 

While any licensed contractor knows how to throw hammers and do reno's, very very few actually know the ins/outs of the unique nature of the 203k and very few of those are financially stable enough to be able to do them. 

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

Hope this helps!