Know your FHA 203K Contractor
FHA 203K Loans is a great product when used correctly. This will be the first in a series of articles that will attempt to give an honest and transparent assessment of several critical moving parts that make up the 203K.
Choosing The Right FHA 203k Contractor
I’ve watched homeowner/contractor relationships play out hundreds of times over the last twenty years. 90% of the time honest hard working contractors and sub-contractors work hard to complete the project in the prescribed time frame. In this article we’ll discuss the other 10%, how to vet them, and avoid them. Spending a little time now will save you a lot of time and headaches later.
Interviewing And Deciding On The Right FHA 203k Contractor
Know who you’re interviewing. Were they a referral from a trusted source? Have them fill out a Contractor Resume. You can find one on my web site www.therehabman.com. Call the referral sources that are listed on the resume. Many times less than honest contractors will include friends and relatives that have been given the heads up to give a good review even though they’ve never had any work done. Ask that person if you can come by and look at the work completed by the contractor. Listen closely to their answers. Actual referrals from solid referral sources (friends and Relatives) are the best way to find a competent contractor. Spending a little time now will save you a lot of time and headaches later.
Your FHA 203k Contractor Should Be Well Funded
Your contractor needs to be well funded. They have to be able to fund your project until you can order the first draw. Most are working on multiple projects and not just yours. Ask them if they have accounts with building supply companies. If they say it’s none of your business than they more than likely don’t. If a contractor does not have the funding to pay his people and have credit lines at the larger building supply companies, your project will take longer to complete if it gets completed at all. Spending a little time now will save you a lot of time and headaches later.
Communication Is Key With Your FHA 203k Contractor
Lastly, if a contractor has communication issues now, they will multiply ten-fold when they’re involved with running your project. If you can’t get a bid or response back at this point, take a pass. Spending a little time now will save you a lot of time and headaches later.
Jay Boetscher “The Rehabman”
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