203(k) Consultant.com

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.