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203K Inspections

If you are purchasing a home in Brandon, Madison, Jackson, Clinton, Flowood or Ridgeland Mississippi with a 203K loan you will be required to have a 203k inspection by a 203k Consultant.  Charlie is certified as a 203k Consultant. 

The following is a list of the basic steps to a 203k loan.  for more information visit HUD's 203k loan page

203(k) Consultant Process

Step #1
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 fee (see fee chart below).

Step #2
Consultant prepares Work Write-Up
·    Clear, concise project specifications
·    Construction cost analysis
·    HUD required draw request forms
·    Preparation of contractor bid packages
·    Preparation of lender packages

Step #3
Consultant delivers the Work Write-Up
·    Borrower
·    Lender
·    Contractor  

Step #4
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.

Step #5
·    Loan Closes
·    Repair funds are placed in escrow
·    Remodeling begins

Step #6
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.
 
203(k) Consultant
Fee Schedule
REPAIR AMOUNT
CONSULTANT FEE
$5,000-7,500
$400
$7,501-15,000
$500
$15,001-30,000
$600
$30,001-50,000
$700
$50,001-75,000
$800
$75,001 -100,000
$900
$100,000 and up
$1,000
(fees are established by HUD)