What does a 203(K) Consultant do?

 

The 203(k) consultant is someone who has been designated by a HUD Homeownership Center for the purpose of completing the Work Write-Up/Cost Estimate and the required architectural exhibits for the borrower. Below is an outline of how we 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.

• Client signs Consultant Agreement and pays Consultant a retainer fee.

 

II. Consultant prepares a detailed Report 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 Report Package:

• Borrower

• Lender

• Contractor

 

IV. Selection of a Contractor by the Borrower:

• The Borrower selects a contractor.

• Buyers please note, banks have certain requirements for contractors. You should find out what they are.

 

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. Warranties and lien releases are collected and submitted to lender.