FHA 203k Contractors: Are There Any Certified Contractors?

There’s a common misconception that contractors need to be certified in order to participate in  FHA 203k loans.  This isn’t true!  There is NO actual official 203k training process that is certified or approved by HUD or FHA.

We make sure you’re going with reputable contractors.

The way we determine which contractors are going to be able to participate in FHA 203k loans is by:

  1. Contacting them personally
  2. Going over the premise of the loan
  3. Making sure they understand how it works
  4. Taking the time to go through their financials– making sure that they have the means and knowledge to be able to participate in one of these loans

We only select REPUTABLE contractors !

Certain contractors, if they can’t float the loan- or “float the job,” as we say, then they’re not going to be able to participate in FHA 203k loans.  Essentially, “floating the job,” means being able to finance the job right from the start.  With a Full 203k loan, contractors don’t receive any upfront cash.  So, it’s important for contractors to understand this all up front, and we make sure of this!

We make sure contractors meet ALL qualifications!

We always do the following with contractors that work with us:

  1. Contact References of the contractor to make sure that they are of sound business practices
  2. Check on Licenses
  3. Check on EDO Insurance
  4. Make sure they are licensed and insured- and bonded, if necessary

So these are the things that we will do as a lender to see if they understand and whether or not they meet the qualifications of a  203k contractor.

There are some independent companies that certify contractors.

One of these is the The 203k contractor directory at 203kContractors.com, which is owned and facilitated by Paul Welden.  He’s got a great resource.  He goes through an intensive protocol of training the contractors so they understand the program from start-to-finish.  It’s a 30 day- all wrapped into one course- kind of program.  Then once they’ve completed the course, he puts them through a test on which they must maintain a minimum score of at least 80%.  If they maintain that 80%, they get a nice, big, shiny FHA 203k certified directory logo.  We have some of these certified contractors on our  Web site  currently, so you can always use these kind of contractors- and know, full-well, that they understand the program and know that they are able to maintain the necessary requirements to participate in an FHA 203k loan.

We make sure our contractors REALLY understand the program!

We always use and look for contractors who really understand the program.  But, back to the main point, no, there is no certification program through HUD or FHA.  It’s our job as lenders to make sure that the contractors understand how the program works and make sure that they are going to be able to meet the requirements and get the job done!