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I.
Site Visit
- Consultant
meets with the borrower at the site.
- A
general examination of the work to be done determines if the project
is feasible.
- If
feasible, Client signs Consultant Agreement and pays Consultant
a $400 retainer fee
II.
Consultant prepares a detailed Work Write-Up which contains:
- Clear,
concise project specifications
- Construction
cost analysis
- HUD
required draw request forms
- Preparation
of contractor bid packages
- Preparation
of lender packages
III.
Consultant delivers the Work Write-Up Packages
- Borrower
- Lender
- Contractor
IV.
Selection of a Contractor by the Borrower
- The
Borrower selects a contractor. Borrowers should be aware that
many lenders may have contractor qualification criteria. Some
lenders maintain a list of contractors that have met their qualification
criteria. Discuss contractor selection with your lender to learn
about their contractor requirements. If you’re considering
a contractor which has not yet been approved by your lender or
has never done a 203(k), it is important that they are informed
early on about the 203(k) concept as it applies to contractors.
V.
Loan Closes
-
Repair funds are placed in escrow.
- Remodeling
begins.
VI.
Consultant Performs Draw Request Inspections
- 1st
Draw - Consultant insures permits were issued.
- 2nd
and 3rd Draw - Draw request inspections are performed as work
progresses.
- 4th
Draw - A punch list is established.
- 5th
Draw - The project is closed out and warranties and lien releases
collected.
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