What does a FHA / HUD 203K Consultant of Tampa do?

FHA / HUD 203K Consultant of Tampa inspect the home you wish to purchase to determine the minimal needs required to meet the guidelines and we develop the Work Write Up which details the work required as well as the improvements you wish to make, assign costs and deliver a report which you submit to your 203K lender for final approval. After approval, we inspect the work performed by the contractor(s) to protect both you and the lender, and approve contractor billings for payment.

What type of repairs or improvements may be made?

 Almost any. Extreme landscaping, some decorating, new pool construction or outbuildings are generally not allowed. You can improve/repair any portion of the home and you can add additional rooms/attached garages. Luxury improvements are not eligible for a 203K loan.

 What is a Minimum Property Standards inspection?

 HUD/FHA requires certain minimum property standards are in place as a loan condition.

These include insulation, smoke detectors, repair of wood rot, proper plumbing, safe electrical system, proper windows/doors. In addition, we will advise you of any issues which may affect your ability to obtain affordable property insurance such as aged roofs, water heaters, HVAC, polybutylene plumbing piping or unsafe electrical panels. Further, we will inspect the home for Wood Destroying Organisms, termites and mold and we will recommend treatment accordingly. These are added values to our 203K consultancy that you won’t get with others.

Step-by- Step 203K Process

This describes a typical step-by- step application/mortgage origination process for a transaction involving the purchase and rehabilitation of a property. It explains the role of HUD, the mortgage lender, the contractor, the borrower, consultant, the plan reviewer, appraiser and the inspector.

1) Home-buyer Locates the Property with an agent whom is familiar with 203K.

2) Preliminary Feasibility Analysis conducted by your 203K consultant. The following should be determined:

a. The extent of the rehabilitation work required;

b. Rough cost estimate of the work; and

c. The expected market value of the property after completion of the work.

3) Sales Contract is created.

4) Home-buyer Selects Mortgage Lender.

5) Consultant Prepares Work Write-up and Cost Estimate.

6) Lender Requests HUD Case Number with case information.

7) Fee Consultant Visits Property.

8) Appraiser Performs the Appraisal.

9) Lender Reviews the Application.

10) Issuance of Conditional Commitment/Statement of Appraised Value.

11) Lender Prepares Firm Commitment Application.

12) Lender Issues Firm Commitment.

13) Mortgage Loan Closing.

14) Mortgage Insurance Endorsement.

15) Rehabilitation Construction Begins.

16) Releases from Rehabilitation Escrow Account.

17) Completion of Work/Final Inspection.