203K Inspections

Construction at residential house back deck being recontructed and repaired

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)