Who is a 203K Consultant?
The 203(k) consultant is an individual that has been designated by a HUD field Office for the purpose of completing the Work Write-Up/Cost Estimate and the required architectural exhibits for the borrower.
Duties of 203K Consultant:
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 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:
IV. Selection of a Contractor by the Borrower:
- The Borrower selects a contractor.
- Buyers please note, banks have certain requirements for contractors, 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 and warranties and lien releases collected.