203k Consultant prices
FHA 203k Consultant
Consultant ID #D1200.
Our FHA 203k consultant rehab prices are for home buyers planning on securing FHA 203k financing and must work closely with 203k consultants to co-ordinate the various steps involved through out the process.
Talk to your Real Estate Agent or Loan Officer about this easy to access source of cash.
Why You Might Need a 203k consultant
If you are planning on a project that requires remodeling and repairs, including structural changes, you will need an FHA-approved 203k Consultant. The selection of a qualified Consultant is crucial, as their expertise can significantly impact the success of the project. The Consultant directs the rehabilitation process, acting as the mediator between the homeowner, contractor, and lender. We also assist homeowners in understanding the scope of work and managing timelines effectively.
The Federal Housing Administration’s (FHA) 203k Rehabilitation Mortgage Insurance Program helps with finance costs. They allow homebuyers or homeowners to combine the costs of rehabilitation or repair with the cost of purchasing or refinancing the home. That’s an attractive option if you are a buyer because it results in a single mortgage. It helps with the improvements in the condition of the property and increases its overall market value.
The Program can be used to finance the rehab and repair of a single home or as many as a four-unit property. That’s a great option for homeowners that would rather remodel than move. Besides that, they can also make energy-saving improvements using that money.
203k consultant Prices
- As 203k consultants we inspect the property and deliver an MPS Report for $475.00. If requested we can also,
- prepare a feasibility study,
- architectural exhibits,
- work write-up,
- cost estimate,
- draw requests,
inspections, and change orders; - and ensure all work is performed in compliance with FHA requirements.
The 203k Consultant may also charge a reasonable and customary fee, not to exceed $350 for each draw inspection request plus mileage at the current Internal Revenue Service mileage rate when the place of business is more than 15 miles from the
property.
Mileage charge of $0.50/mile will be added to initial inspections and all draw inspections.
Note that you might need a 203k consultant because most lenders will not allow a borrower or a contractor to prepare the exhibits. Also, that the fee will be the higher figure for multi-unit dwellings
Types of mortgages where you might need a 203k consultant
With the right support and planning, a 203k loan can transform a fixer-upper into the dream home you’ve always envisioned. There are two mortgage choices. The 203k consultant can help with both.
Limited 203k Mortgage
- The Limited 203k mortgage allows homebuyers and homeowners to finance up to $75,000 into their mortgage. They can use it to repair, improve, or upgrade their home.
- Homebuyers and homeowners can use this as a quick and easy way to get the cash necessary to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser.
- Homeowners can even do minor remodeling and non-structural repairs, improvements, or prepare their home for sale.
- Homebuyers can also make their new home move-in ready by remodeling the kitchen, painting the interior, or purchasing new carpet.
Standard 203k Mortgage
- The Standard 203(k) program is for the major rehabilitation and repair of single-family properties.
- The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area.
- The Standard 203(k) program is an important tool for major renovations, structural additions, community, and neighborhood revitalization, as well as to expand homeownership opportunities.
Stages in the 203k consultant Process
There are three stages in the process.
ORIGINATION STAGE
- The Borrower owns or finds a property that requires rehabilitation.
- Borrower talks to an FHA-approved lender and selects FHA 203(k) program.
- Lender selects a 203(k) HUD-approved consultant from the roster. This step is optional for the Limited 203(k) Mortgage.
- 203k Consultant visits the home with borrower and prepares a work write-up and cost estimate.
- Work write-up and bids are provided to the lender.
- Lender processes, underwrites, closes, and funds the transaction.
- Lender submits the loan for endorsement and FHA insures the loan.
- Improvements can begin.
REPAIR/IMPROVEMENT STAGE
- Contractor obtains necessary permits prior to the start of the project.
- Contractor completes the first phase of the project.
- Borrower contacts the 203(k) consultant to request an inspection for draw release.
- 203k Consultant and borrower inspect the work and consultant certifies work is satisfactory.
- Consultant and borrower sign the draw release and submit to lender for payment.
- Lender issues a two-party check made payable to borrower and contractor.
- This process continues until all work is completed.
PROJECT COMPLETION STAGE
- Borrower provides a release letter indicating all work is completed.
- 203k Consultant verifies completion.
- Consultant obtains certificate of occupancy or building permit close-out approval if applicable.
- Remaining escrow funds are released.
- Lender is responsible for closing out the entire project on the Escrow Close-Out Screen in FHA Connection.