Do you want to become a HUD certified 203k consultant? To become a HUD-certified 203k consultant, an applicant must follow the process described in the LETTER HUD Mortgagee 2000-25 of July 26, 2000. Certified advisors are added to the HUD 203k list of consultants and can be searched via the search form on the HUD WEB website. The role of the 203k consultant is essential to the success of a 203k loan from the FHA. The advisor is responsible for the on-site visit and the work of HUD writes and is responsible for the stay during the project to facilitate draws and inspections. I like to think of this person as your mini-«project manager» and add a nice level of comfort to the project. It is very important that you and your advisor have excellent communication at all times. Let`s go into detail about the advisor`s responsibilities: once the offer specifications are completed and a cost projection is calculated by the advisor, the specifications are verified by the borrower for corrections, deletions or supplements. The borrower`s desired upgrades that are in the budget Our consultant fees follow the HUD guidelines and are based on the renovation budget as follows: The consultant verifies the forms that the borrower must sign at the conclusion, including: The FHA 203k consulting fees mentioned above are for detached homes. For apartment buildings, the costs may be higher. As a general rule, there would be an additional $50 for each unit that goes beyond the first unit. The overall objective/responsibility of the 203k HUD consultant will be to ensure that minimum property standards are met by HUD.
In the work, the advisor will write the necessary repairs that must be made to the property. The advisor will also make recommendations for the work that should be done. Finally, it will contain the desired work that the borrower wishes to include. After signing the consultant contract, the advisor`s role is to help you make an informed decision. The counsellor is not a home inspector, but can visit the site and give an idea of the rehabilitation costs and the requirements of the FHA. If the property is already under contract, your HUD 203k consultant conducts an on-site visit and feasibility analysis to determine the necessary repairs to the FHA and to understand the upgrades and modifications the customer wants. The client must provide the advisor with a copy of the inspection. During the drawing/inspection process, the advisor will check the property to ensure that all work is completed before the funds are released.
Once the abbre party has been verified and approved by the borrower, a definitive written estimate, called work volume, is drawn up to make a package of offers available to contractors. The last big point to mention is that the 203k consultant has its price. Some charge a flat fee, but most of the time you will see that they follow HUD`s pricing plan. According to this schedule, the basic tax is $400 for repairs between $5,000 and $7,500.