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203k Quality of Construction

By
Home Inspector with 203kOnLine.com, covering the USA S0289

203k Quality of Construction

There seems to be some confusion as to the level or standard of construction that we must adhere to for the FHA 203k. Choose a good Contractor

There wasn't any confusion last year or the year before etc.. but all of a sudden it seems some of the contractors are confused as to the level of quality. It is my opinion that those who are confused have never had a "standard of quality" and likely shouldnn't be contracting.

If you have to ask "to what standard will my work be held" then I don't want you working on any of my projects. While we tend to use the FHA "Minimum Property Standards" as a basis that is merely a basis and shouldn't be interpreted as "minimum" on anything. These standards are a basic health and safety standard not meant to mean anything other than what it is.

We caught a contractor who actually covered rotted wood with new vinyl flooring the other day - WHAT IS HE THINKING? It makes you wonder how long this has been going on. They actually glued down the lenoleum to rotted wood that when it was pulled up the rotted wood stuck to the lino as it was removed in little pieces. There is no way the person who laid that lino thought it was right. If they did they should be put in jail in my opinion. This is criminal. This work was not done to any standard, not even a standard of decency. 

The "203k consultant" acting as a "draw inspector" has a responsibility to catch sub standard work and frankly "not pay for it" till it is done right. Some contractors just don't get it till we keep scratching out the "requested item" a few times then they realize it WILL NOT be paid till it is done right. ONLY then do they understand our roll as "inspector".

The "draw inspector" is NOT the "job supervisor" and it annoys me for one, when the contractor fails to supervise their crew in hopes no one will complain. If there are no complaints then they feel they must have done a satisfactory job. This is the "new home" construction model used today as well. 

A few years ago we bought our first "tract home" to find out they won't let you bring a "home inspector" with you on your walk through. They further will remove your roof warranty if they catch you or anyone you hire walking on the roof. They want to have you take possession of the home, then, if the roof leaks (as mine did) it becomes an insurance issue and doesn't come out of their pocket. This mentality has sadly crept into the remodeling industry.

When you pick a contractor for your 203k project please check their references and know how long they have been doing remodeling. NARI contractors are a good place to start. (National Association of the Remodeling Industry) but certainly not the only place to find good remodeling contractors. 

We have been asked many times why we are willing to provide a list of qualified contractors to our clients. It is simple that we have learned who is worthy of a recommendation and who we never want to see again. Several of the contractors we use today have been working on our projects since 1994. A few have NEVER had a complaint and in every case the client they worked for would recommend them and use them again. I'd like to thinik the contractors we use are the best in the business. It doesn't mean all the best work for us and our list is always growing. 

When a client comes to us with a contractor it is our company policy to use that contractor unless they can't be validated by the lender. Only then would we make a recommendation otherwise. Since we don't make money on the contrator selection it doesn't matter to us who the client uses. We educate the contractor in the ways of the 203k, how they get paid with no "up front" money, etc. Yesterday I had a contractor tell me if he couldn't get 30% down payment it was a deal killer for him... he was replaced. 

CA contractors are only allowed to ask for 10% up front I thought... hmmmm.  Many will ask you for more than that "up front", don't do it. If they are a bonified contractor they shouldn't  ask for more than 10% up front.

 

 

 

downtown   10-14-2023

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

Got a 203k project giving you "fits" contact www.203k911.com. If you are looking for quality 203k software for consultants to speed up the underwriting process..

877-207-6565  state your name when asked please, it is dialing me at the same time.

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Comments (2)

David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Good explanation Mike. Home builder scan really create problems when they won't allow inspectors to do their job. As I tell me clients, if they won’t allow an inspector to do his job, what does that tell you about the quality of the house.

Aug 10, 2011 03:02 AM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

David, thank you for the response.

Aug 11, 2011 03:14 AM