203K HUD Consultant and the Streamline Renovation Loan

With FHA HUD 203k Renovation Loan there are two types of products; Streamline and Standard (also known as Full 203k). FHA HUD requires the use of a 203k Consultant for a Full or Standard loan product, but does not mandate a consultant as a requirement for a streamline loan product. However some lenders do require the use of a consultant to do a streamline loan even though FHA may not.

The 203k Consultant is a tremendous asset for streamline loans because he can identify the required health and safety items needed to be addressed in the course of the renovation. The lender traditionally accepts a home inspection and a contractor bid for the streamline as opposed to the Work Write Up/Scope of Repair package the Consultant prepares for the Full 203k. However home inspectors and contractors do not always know what the 203k renovation requirements are to make properties eligible for financing. Because of this, many homes may have delays in closing because the appraiser and underwriters come back with conditions or repairs that were not addressed in the submitted packet.

Another benefit to having a 203k Consultant inspect the property for a streamline loan is that a streamline loan product is only eligible for repairs cost under $30,000, along with other conditions of the property. A 203k Consultant is able to identify any conditions with the property that will disqualify it from a streamline; meaning it must become a Full 203k. For example a crack in a foundation slab or the need to replace an entire roof; as the streamline is not eligible for properties needing structural repairs regardless if the amount was less than $30,000.

For more reasons on how a 203k Consultant can benefit a 203k Streamline Renovation loan please contact us directly and we will be happy to assist you.