How do you cost out a project for FHA 203k project?

Home Inspector with, covering the USA S0289

How do you cost out a project for FHA 203k project?

HUD handbooks provide the answer to this question. Your choices are R.S. Means or HomeTech Publishing. Years ago I took a week long class from R.S. Means at a cost of about $1,500 as I recall, to be able to tell 203k consultants all over the country if it was a good source for costing. It was the most boring class I had ever taken, dry, very dry study material, only to find out their costing data was geared toward mass renovation of residential properties like 100 - 1,000 homes at a time and it just was too, way too high for what we do as consultants doing one house or 2-4 unit building at a time. It just wasn't practical. 

Having said that, I wish I had take the 30-minute tutorial on the HomeTech site, I would have learned allot more and for a whole lot less money. 

Here is what HUD says about it...

"Handbook 4240.4 REV-2 (para. 3-2.F.) discusses the use of cost data publications from R.S. Means "Repair and Remodeling Cost Data" book and the "Home -Tech Remodeling and Renovation Cost Estimator." The cost estimates include overhead and profit for a contractor or a mortgagor doing their own work. Where the HUD Field Office has determined that these cost estimating books are excessive for certain localities in their jurisdiction, they now have the authority to require further justification from borrowers to ensure the cost estimates are reasonable. The Field Office will notify the 203(k) lender and plan reviewer if additional information is required for a particular case. To guard against over-estimates of rehabilitation costs, the amount of funds requested for a draw inspection cannot exceed the actual cost of rehabilitation and/or the actual percent of completion of the rehabilitation. On each draw, the mortgagor must certify the actual costs and completion percentage for each line item used on the revised Draw Request, Form HUD 9746-A (Attachment 2)..."

If you would like a copy of the HomeTech Remodeling & Renovation Cost Estimator please use this code "MYTEAM" for your discount.





Posted by

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

To learn more about the FHA 203k loan program go to To contact us for a consultation please go to and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

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

Skype name: the203kconsultant

following Mike Young on Twitter Facebook You Tube MY 203k Team bug




This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Lending / Financial
California Alameda County San Leandro
Home Builders of America
The FHA Mortgage Group
cost estimating for fha 203k
get your own cost estimates for limited 203k projects

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Many buyers are looking for a truly undervalued property with real equity the day of the purchase. Typically these will be bank owned fixer uppers. The buyer should get an FHA 203k renovation loan so the house can be fixed up fast and professionally. When deciding on the purchase, the increased value of the home resulting from the renovation should be substantially higher than the renovation cost. Always work with a loan officer specializing in 203k loans, and with a Realtor who can project the after-repair value.

Jun 14, 2017 08:23 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Mike Young

FHA 203k Consultant 916-758-1807
Want to close your 203k loans faster?
Spam prevention

Additional Information