Fha 203K Consultant Agreement

The use of a consultant accepted by the HUD does not mean that HUD assumes guarantees as to its competence or the quality of its work. Now that we`ve asked the 203k consultant what role the 203k consultant plays in FHA`s full 203k loans, we`re looking at the components more closely. The 203k consultant`s fee is based on the cost of the repair work that will be financed by a 203k FHA loan. Actual royalties may differ from the amounts published by HUD in its general pricing plan for consultants conducting the feasibility analysis report and other related tasks. For the fees set by HUD, a 203k advisor will personally visit the property and provide all the necessary architectural pieces with a complete work write-up. It is not mandatory for a buyer to hire a 203k consultant approved by HUD. You can opt for an independent consultant, like. B a contractor, to prepare the exhibitions, or to use an architect or engineer with a valid government license. Although the fees charged by an engineer or architect are not related to the aforementioned fees, they must nevertheless be within an appropriate range. Then we`ll look at the raffles. The 203k advisor determines the number of draws allowed based on the extent of the work. The maximum is 5 and, in general, there is a fee of 250-350 dollars for each draw inspection, so it is always best to take as little as possible. This tax is funded, but if your contractor can finish in 3 against 5, it`s always the best! Even if you have used an independent consultant for the feasibility analysis, a mandatory screening must be conducted by an honorary advisor accepted by HUD to ensure that the property complies with the guidelines and requirements of the 203k program.

To do this, utilities must be located prior to visiting the site. The fee to be collected is set and depends on the amount of repair work. For properties that require less than $15,000 in rehabilitation, the tax is set at $100. For repairs ranging from $15,001 to $30,000, a consultant`s costs are $150 to $200 for all work over $30,000. These fees are based on the verification of detached houses. For multi-family properties, $50 per additional unit, as long as these units are less than the same case number as the main unit.