What is a 203k specialist?

A 203(k) consultant is like a football team’s offensive coordinator – a point guard that runs plays on a basketball court and a star infielder – all in one. Most 203K consultants are licensed home inspectors, general contractors, and sometimes architects. (Licensing requirements vary by state.)

Who pays the contractor in a 203k loan?

The contractors are paid in a series of draws by the borrower’s lender through escrowed funds. At closing, the lender places the rehab/improvement funds into an escrow account. More detailed information is available in the 203k Contractor Education Course. Contractors receive maximum two (2) payments.

How do I get a 203k loan?

You’ll need to work with an FHA-approved lender in order to apply for the FHA 203(k) loan. Lenders require applicants to possess a credit score of at least 500. An FHA 203(k) loan requires a minimum down payment of 3.5% for those who possess a credit score of 580 or above, and 10% for those with a lower score.

What is the FHA 203k loan program?

An FHA 203(k) loan is a type of government-insured mortgage that allows the borrower to take out one loan for two purposes: home purchase and home renovation. An FHA 203(k) loan is wrapped around rehabilitation or repairs to a home that will become the mortgagor’s primary residence.

What is the FHA 203K loan program?

What is a HUD consultant?

The HUD Consultant is the quarterback between the homeowner, the general contractors, and lenders. The HUD Consultant is responsible for the work to be done correctly, timely, and professionally. The role of FHA 203k Consultant is to make sure that the construction funds are properly spent on the project.