FHA 203k Contractor

FHA 203k Contractor Role For Homeowners on FHA 203k Loans

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss the FHA 203k contractor role for homeowners on FHA 203k loans. The U.S. Department of Housing Administration (HUD) is the parent of the Federal Housing Administration (FHA).  HUD created and implement the FHA 203k Mortgage Program to promote the revitalization of housing in neighborhoods throughout the U.S. FHA 203K loans is a great mortgage loan program for home buyers buying fixer-uppers. Homebuyers of fixer-uppers can purchase a home in a location they like that needs complete gut rehab and customize it like a custom home with FHA 203k Loan Programs.

The Rewards of Buying Fixer Uppers with an FHA 203k Loan

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Buyers of fixer-uppers can purchase a fixer-upper with the acquisition and construction funding all in one loan with a 3.5% down payment of the after repaired value with FHA 203k loans. 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. There are two types of FHA 203k Rehab Loan Programs: Streamline and Full Standard 203k loans. In this article, we will discuss and cover How To Choose And Hire The Right FHA 203k contractor.

Choosing The Right FHA 203k Contractor

Borrowers of FHA 203k loans need to choose a HUD Certified 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 the contractors who are being interviewed. Were they a referral from a trusted source? Have them fill out a Contractor Resume. 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.

FHA 203k Contractor Should Be Well Funded

FHA 203k 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 then they more than likely don’t. If a contractor does not have the funding to pay his people and has credit lines at the larger building supply companies, the 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 FHA 203k Contractor

Communication Is Key With Contractor

Lastly, if a contractor has communication issues now, they will multiply tenfold when they’re involved with running your project. Homeowners who can’t get a bid or response back at this point, take a pass. Spending a little time now will save a lot of time and headaches later. Homebuyers who need to get qualified for FHA 203k rehab loans, please contact us at Gustan Cho Associates at gcho@gustancho.com.or call us at 800-900-8569. Text us for a faster response. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

Related> What Is A FHA 203k Loan?

Related> FHA 203k Rehab Loans

Where To Look For Reputable FHA 203k Contractor

Good Morning and thank you to everyone for viewing my blog on choosing the right FHA 203k Contractor. Today I want t talk about how important it is in choosing the right FHA 203k Rehab Contractor when getting an FHA 203k Rehab Loan. Having the ability to view a property that needs work, the vision of what it will look like once it is completed, then add the total cost of the rehab into a mortgage loan is an amazing feeling. What’s not an amazing feeling is having a general contractor who takes on your project and leaves you hanging n the end, after exhausting half of your budget on 20% of the scope of work that’s needed. You can change FHA 203k Rehab Contractors during the mortgage process. Changing FHA 203k Contractors can be done. I will cover another blog article on Gustan Cho Associates. In this article, we will discuss and cover How To Choose The Right FHA 203k Rehab Construction Consultant.

My Experience In Choosing The Right FHA 203k Contractor

This happened to me and I don’t know what I would have done if I did not have the passion that I have about watching HGTV daily, and a very creative vision of bringing things back to life.

  • If you know me personally or see me out I’m always in a fur coat and or a trench, and a stiletto heel
  • Never in a million years did I think I would ever have to put on a hard hat and some construction boots
  • When you’re left with no option, your budget halfway gone, and 80% of the project still needed to be completed, you’re left with no choice
  • I’m sure many of you have gone into properties and have seen many of them with work started and never completed, or completely demoed down to the frame work
  • A lot of properties are left in these conditions because of similar situations like mine
  • They we’re put in a situation where the property was quoted under budget for the renovations, and or they ran out of personal funds to continue the project themselves
  • That’s why it is very crucial to hire a commercial broker or any other that is very experienced in the construction business

Especially if you’re doing a full FHA 203k renovation mortgage loan.

Scope Of Work On FHA 203k Contractor

The scope of work received by your contractor is the number that the bank determines your project will cost, and the number you will work with over the term of your renovation project. I can write a book on his topic. But I want to take my time and really help you understand how to direct a contractor, and how to avoid having to walk away from your property that was once a vision like no other. Stock with me and you will avoid many of the mistakes that I made while purchasing my first property and hiring the contractor that I did. The best advice to take is from those who have experience in what you’re seeking to accomplish! Have a great evening and stay tuned world!

About The Author of FHA 203k Contractor

Dale Elenteny is a staff writer and associate contributing editor for Gustan Cho Associates. Dale is a licensed mortgage loan originator. Dale Elenteny is also an FHA 203k Loan Specialist for Gustan Cho Associates. Dale Elenteny is an expert in FHA 203k Loan Origination as well as an expert in originating and processing all types of FHA, VA, USDA, Reverse Mortgages, Jumbo Mortgages, and Conventional Loans. Dale is a true inspiration for Gustan Cho Associates Lombard, Illinois branch. He is a natural leader who does not hesitate any newer loan officer who needs help in going over case scenarios. Dale will be writing articles weekly on Gustan Cho Associates in areas of her expertise as well as her experiences to share with our viewers and clients. We are grateful to have Dale as part of our growing team of mortgage professionals. Alex is available 7 days a week, on weekends, evenings, and holidays to take on any calls to answer any questions with regards to specific case scenarios on all types of lending. For more information, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at Gustan Cho Associates at gcho@gustancho.com.

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