Role of The 203K Consultant

The 203(k) consultant is someone who has

been designated by a HUD field Office for the

purpose of completing the Work Write-Up/Cost

Estimate and the required architectural exhibits

for the borrower.

To be designated, the consultant has met the

experience requirements for HUD approval and

has been trained in the Work Write-Up format of

the 203(k) program. By using an approved

consultant, there is no need for a Plan

Reviewer to check the Work Write-Up.

We are consultants that are fee panel

inspectors who have HUD approval to also act

as consultants. Below is an outline of how we

guarantee you a successful project.

I. Site Visit

- Consultant meets with the borrower at the

site.

- A general examination of the work to be done

determines if the project is feasible.

- If feasible, Client signs Consultant Agreement

and pays Consultant a $400 retainer fee

II. Consultant prepares a detailed Report which

contains:

- Clear, concise project specifications

- Construction cost analysis

- HUD required draw request forms

- Preparation of contractor bid packages

- Preparation of lender packages

III. Consultant delivers the Report Package

- Borrower

- Lender

- Contractor

IV. Selection of a Contractor by the Borrower

- The Borrower selects a contractor. Borrowers

should be aware that many lenders may have

contractor qualification criteria. Some lenders

maintain a list of contractors that have met their

qualification criteria. Discuss contractor

selection with your lender to learn about their

contractor requirements. If you’re considering a

contractor which has not yet been approved by

your lender or has never done a 203(k), it is

important that they are informed early on about

the 203(k) concept as it applies to contractors.

V. Loan Closes

- Repair funds are placed in escrow.

- Remodeling begins.

VI. Consultant Performs Draw Request

Inspections

- 1st Draw - Consultant insures permits were

issued.

- 2nd and 3rd Draw - Draw request inspections

are performed as work progresses.

- 4th Draw - A punch list is established.

- 5th Draw - The project is closed out and

warranties and lien releases collected.