FHA 203K Renovation Loans - What is a HUD Consultant?:

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Simply put, the FHA 203K, or other "renovation loan" is a type of mortgage that allows the buyer to purchase or refinance a property in Rochester, Buffalo, or Syracuse NY, and finance the renovation costs within the mortgage. 

The Renovation Loan process is as follows:

• Contact a 203K Lender/Get Pre-Qualified. This is the first step in purchasing and renovating your new home. Your lender determine the mortgage amount you are qualified for so that you can begin the search for your new home. 

• Hire a Real Estate Professional. Your agent will aid you in searching for and negotiating on your new home. Selecting an agent that is familiar with the 203K or other renovation loan process can help but is not required. We are happy to help agents that are new to renovation loans through the process. (If you’re refinancing an existing loan with a 203K, a real estate professional is not necessary.)

• Contact us for a Consultation Appointment. We will meet with you at the property and conduct a HUD Minimum Property Standards inspection and discuss your desired improvements such as new cabinets, flooring, windows, etc. After our meeting and the inspection the Specifications of Repair and Bid on Repair documents are created. 

• Get Contractor Bids. Using the “Bid on Repair" documents prepared by me as your Rochester, Buffalo, or Syracuse NY FHA 203K HUD consultant, you will need to obtain contractor bids for the scope of work outlined in the documents.

• Select a Contractor. As your renovation loan consultant, I can assist you in this process and verify contractor compliance to the specifications. Once all the paperwork is submitted to the lender, the lender will send an appraiser to the property to determine what the value of the property will be once the renovations have been completed. Once the appraisal report is complete, in most cases, your lender can close the 203K loan. 

• Schedule the Contractor to Begin the Work. Once your loan closes the work can begin. the contractor will require continuing inspections called “Draw Requests” in order to get progress payments for the work as it’s completed. As your renovation loan consultant I will inspect the project and prepare these documents and repeat the procedure until the project is complete.  

We are the premier, certified FHA 203K HUD Consultant in Western NY. We work closely with the borrower, lender, and contractor to help ensure a smooth process from the initial inspection to completion of the project. The overall objective/responsibility of the 203K HUD Consultant is to ensure HUD’s minimum property standards are met and to provide the borrower, their lenders and their contractors with documentation such as project specifications, scope of work, cost estimates, etc. A 203K Consultant is like a project manager who works closely with you to coordinate and complete the many steps involved throughout the process. A Consultants responsibilities include, but are not limited to, the preparation of the: 

• Feasibility Study
  • This entails an inspection of the property in order to ensure it complies with HUD Minimum Property Standards. Additionally, the borrowers desired improvements are discussed at this time. A rough cost estimate of work that will be necessary for the home to comply with HUD requirements  is compiled and if it is determined that the project is feasible, the buyer may proceed with the application and enter into a contract to retain the consultant. At this time the Consultant will prepare the Work Write-Up. In some situations we are able to forego the Feasibility Study and move directly to the Work Write-Up.

• Work Write-Up
  • Based on the initial site visit and client input regarding their desired improvements, the 203K HUD Consultant will prepare clear and concise documentation regarding the project's scope and specifications. This includes but is not limited to, all applicable 203K/lender forms, a complete job Specifications of Repair, Bid on Repairs form, Client/Contractor Agreement, architectural exhibits, and Draw Request forms. Once the documents have been completed and executed, they will be submitted to your lender for processing. 

• Draw Inspections
  • Prior to draws (payments to contractors), a draw inspection must be conducted to ensure that all work has been completed to an appropriate and acceptable level. Funds are released as work is completed.

Once the final inspection has been finalized and all lien releases have been collected, the project has been successfully completed.