203K Consultants

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:

  • 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, 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.