If you have read any of our blogs you will have seen that we write about all the interested parties in the FHA 203k process. Today we want to highlight one of the most important and sometimes over looked parties. That is the FHA 203k Consultant. Picking the right FHA 203k consultant can be crucial to a smooth ride using the FHA 203k.
The FHA 203k Consultant plays an integral part in the FHA 203k process- they help to bridge the gap between the contractor, customer and lender. Their job is to make sure that the property is being brought up to FHA minimum property standards (health, safety and marketability are the main components of this) but that is truly only a small part of what they do in the actual transaction.
In FHA 203k mortgages our consultant will visit the property up front to do his Specification of Repairs, also known as the SOR. The Specification of Repairs is an extremely important document as it define what the scope of the work will be and then this document is put into the appraisal to help create the “after-improved” value. Once the actual FHA 203k mortgage has gone to closing the 203k consultant will be called back out to the property each time the customer or contractor requests a draw. The job of the consultant is to inspect the work completed, fill out a draw request from and then submit to us a request to have a check drawn out of the renovation escrow account.
FHA 203k renovation mortgages, whether in NJ, PA, MA, MD, DE, CT or any other state that we are licensed in, require the same key elements for success- a knowledgeable lender, who plays the “FHA 203k Mortgage Quarterback“, a contractor who understands the product and a FHA 203k consultant with experience!
So if you are considering looking into purchasing a home using a FHA 203k rehab mortgage or looking to refinance an existing home that you currently live in make sure your FHA 203k consultant comes recommended.