Who is a 203K Consultant?
The 203(k) consultant is an individual that is designated by a HUD field Office in order to complete 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 determines if the project is feasible.
- If feasible, Client will sign Consultant Agreement and pay Consultant a retainer fee.
II. Consultant prepares a detailed Report which contains:
- Clear, concise project specifications
- Construction cost analysis
- HUD required draw request forms
- Prepares contractor bid packages
- Prepares lender packages
III. Consultant delivers the Report Package:
IV. Selection of a Contractor by the Borrower:
- The Borrower will select a contractor.
- Buyers please note, banks have certain requirements for contractors, find out what they are.
V. Loan Closes:
- Repair funds must be place in escrow.
- Remodeling begins.
VI. Consultant Performs Draw Request Inspections:
- 1st Draw – Consultant must insure that permits are issued.
- 2nd and 3rd Draw – Draw request inspections will be perform as work progresses.
- 4th Draw – Consultant must make a punch list.
- 5th Draw – The project will be close and warranties and lien releases collected.