How Do I Choose My 203K or HomePath Renovation Mortgage Contractor
FHA 203K | HomePath Renovation – Contractor Selection
Want a successful FHA 203K or HomePath Renovation? You need to select the right contractor. Contractor selection is YOUR choice. It is VITAL. YOU need to do the research, YOU need to make the calls, YOU need to get the bids and YOU will ultimately make the contractor selection. Hoping for a list of HUD approved contractors for your 203K loan? Guess what, that doesn’t exist. No such thing.  Can you imagine the liability of your lender or HUD selecting your 203K or HomePath contractor? What if something goes wrong?
Although I can’t select you contractor for you, I can surely advise you on what to look for in a successful renovation loan contractor! Here are a few tips…
Are They Properly Licensed & Insured?
To complete a FHA 203K renovation in Georgia, Alabama, South Carolina, Florida or any other state the contractor MUST be correctly licensed. You can verify their licensing via the Secretary of State’s website. No license? Move on, the rules are simple, FOLLOW THEM!  If contractors have not met these licensing guidelines, not only will your FHA 203K contractor have a tough time pulling permits, but your loan likely will not make it through underwriting in the first place.  If they are not licensed then they CAN NOT work on a FHA 203K, HomePath or HomeStyle Renovation loan.
Do They Have References?
If the contractor can’t come up with three people that like them then why the heck would you want them on your job?
Do They Have a Line of Credit?
The reason you want FHA 203K or HomePath contractors to have a line of credit is so they can begin work immediately after closing without having to wait for the first draw. On a Streamline 203K or a HomePath Renovation you’ll get your first draw 5-7 business days after you close. The final draw will be disbursed when all the work is completed and inspected. On a Consultant (Full) 203K or a Fannie HomeStyle there are NO upfront funds. Work, Inspect, Draw – rinse and repeat. Typically, you’ll get 5 draws max on the 203K and 4 on the HomeStyle.
You can also check out 203KContractors.com, they are a great source for 203K & HomePath Renovation Contractors
Regardless, make sure you have a loan officer who can explain the draw process and make sure your draws are not being serviced by BofA or expect a long delay for your funds. If your loan officer can’t explain the draw process IN DETAIL then find one who can. Renovation loans require EXPERIENCE and EXPERTISE.
More From 203K Mortgage Loans
- HomePath Renovation Mortgage
- How to Write a FHA 203K Purchase Offer | 203K Loans | HomePath Renovation Mortgages – Georgia, Florida, Alabama, SC
- FHA 203K Loans – The Process
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- FHA 203k Streamline: How Do Payments Work? (Arizona Mortgage Team)
- FHA 203k Streamline: Contractor Requirements (Arizona Mortgage Team)
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http://203kContractors.com Paul Welden
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