Once you receive the written Pre-Approval from the lender and your buyer has located a property make the offer with a provision in the sales contract that "The buyer has applied for Section 203(K) Financing and "The contract is contingent upon loan approval and the buyers acceptance of the additional required improvements as determined by HUD or the lender.
The expense of the Preliminary Feasibility Analysis is charged to the buyers of the property in advance of the loan closing but is refunded back to them at the time of the loan closing.
Should the buyer back out upon the results of the Feasibility Analysis; the fee is NOT refundable.
Search here for a local Certified 203(K) Contractor to do your Preliminary Feasibility Analysis.
It is important to remember that HUD may require additional repairs that the borrower did not plan on doing.The additional repairs must be completed in oder to secure any loan.