Choosing The Right Contractor For Your FHA 203(K) Loan
First and foremost your contractor should be properly licensed and insured. someone Located locally with valid credentials and a solid reputation is what you are looking for. Get bids from several contractors and make sure they are familiar with the FHA 203(K) Loan Processes. You will be working hand and hand with the person you hire so make sure you feel comfortable with them going in. Every project should have a detailed description of materials used along with a payment schedule. The contractor who is familiar with the 203(k) loan process will understand the requirements set forth by lenders for completion dates and payouts from previous jobs.
Do not pay the contractor anything up front. Once the appraiser and I have had a chance to look at the estimates and determine if the improvements will add enough additional value to the property to satisfy the lenders requirements the work order can be set in motion based on the loans close date.
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