203 K Consultant Process

203(K) Consultant Process

1.General contractor certification

     Process acknowledgement form

2.First borrower / consultant property visit

     Homeowner / Contractor agreement

3.Property Inspection 3-4 Hours

4.Preliminary Work Write-up (specification of repairs)

     Emailed to the borrower with a copy of contractor's bid (blank forms - sample page,instruction page)     

          Include specialized reports if needed

               I.      Mold inspection

               II.      Stucco inspection

               III.      Engineering reports

5.Specification of repairs

     Overview page

     Recap page

          I.      Total amount

          II.      Contingency amount

          III.      Total draw inspections

          IV.      Balance of consulting fees

6.Number of draws

     (based on the rehab amount and request from the contractor -  average one every $10,000 / Max 5)

7.Contingency Reserve

     10% if all utilities are turned on

     15% if any utilities are off

     20% complicated projects / older homes

8.Change orders

If a change to repairs is requested they will be documented and approved by lender.  Change request must be signed by borrower, contractor, consultant, and submitted to lender with draw request.

9.Contractor bid reviewed by client

10.Work Write-up

Borrower or general contractor to send copy of the completed contractors bid to consultant.  If bid numbers are good and complete, any adjustments are then made to the work write-up.

11.Signature Process

Borrower and general contractor must sign the following and sent to the consultant to put into the final package.

          I.      Specification of repairs

          II.      Homeowner / general contractor agreement

          III.      Permit certification   

12.Final package - sent to lender and borrower

     Final work write-up

     Homeowner / general contractor agreement

     Permit certification

     Consultant / homeowner agreement

     Consultants identity of interest

     1^st draw

     Invoice from consultants balance due 

 Time Line

Steps 1,2,3,4 (initial site visit)                                      1 day

Step 5 (pre ww-up and contractor bid)                            2 days

Step 6 (borrower reviews preliminary doc's)                    1 day

Step 7 (contractor works on bid)                                   3 days

Step 9 (bid reviewed by borrower)                                 1 day

Step 10 (bid sent to consultant and ww-up modified)      1 day

Step 11 (signature process)                                                                         1 day

Step 12 (Final package sent)                                                                        1 day