203K Consultant (PA) : "Can I do the work myself?"
As a 203K Consultant in PA, I get asked from clients every now and then "Can I do the work myself?".
Say you are a client looking into getting an FHA 203K loan on a house that you are buying (or already own). Maybe you have a background in carpentry or find you are handy and could save some money by doing the work yourself.
Can it be done? Sure, you can try it but I do NOT recommended it.
First, you'll need to let your Lender know this early in the application process. The lender will want you to explain your experience and skill level in the various work you are asking them to finance for you.
Second, understand that the lender will NOT pay you for your labor- only materials. This is assuming you are successful in demonstrating to the lender that you have the expertise needed in the first place. The lender may also require a larger Contingency Fund in the event you cannot finish and have to hire a contractor afterall.
Rehabbing a property is not for everyone. Even some carpenters and other tradesmen should consider hiring a contractor to make sure the work is completed in a timely manner and at a fair price.
You do not “always need” a licensed contractor to do some home repairs, however, you will need a licensed contractor to provide a copy of their License from the state of PA and a copy of their Insurance along with a signed Construction Agreement that must be submitted to your Lender before you can get final loan approval.
Your Lender has some discretion to approve or not approve your requested Contractor. Make sure to do your homework and look for reputable Contractors as these are the people who can make the process run smoothly or they can give you more headaches!
David Artigliere with ARTI Home Inspections LLC is a
HUD-Approved 203K Consultant.
David offers his 203K inspection services all over Southeastern PA including Reading, Philadelphia, West Chester, Allentown, Lancaster and surrounding.
Call 610-220-1907 or visit www.203kpa.com