203(K) Program Overview of Our Services.
203(k) Consultant Fee Schedule
(As Established By HUD)
Below is an outline of how I guarantee you a successful project.
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 $100 retainer fee. This is the only fee paid out of pocket. The rest of the fee will be included in your closing cost.
II. 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.
III. Consultant prepares a detailed Report which contains:
- Clear, concise project specifications
- Construction cost analysis
- HUD required draw request forms
- Preparation of lender packages
IV. Consultant delivers the Report Package:
V. Loan Closes:
- Repair funds are placed in escrow.
- Remodeling begins.
VI. Consultant Performs Draw Request Inspections:
The number of draws is determined by the homeowner and consultant with a minimum of two. A typical whole home renovation will require the following:
- 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.