What does a 203k Consultant do and how much does it cost?
The consultant meets with the borrower at the site to determine if the project is feasible. If the client and consultant sign an agreement to go forward, the consultant will prepare a detailed report that includes project specifications, a construction cost analysis and HUD-required draw request forms. The consultant will then prepare contractor bid packages and lender packages. After the loan has been approved, a rehabilitation escrow account is created. Funds are dispersed after HUD-approved inspections are complete.
How much does a 203k consultant cost?
While prices may vary slightly, HUD has established a general fee schedule for 203k consultants based on the following ranges for repair costs.
REPAIR AMOUNT CONSULTANT FEE
| $5,000 - $7,500 | $400 |
| $7,5001 - $15,000 | $500 |
| $15,001 - $30,000 | $600 |
| $30,001 - $50,000 | $700 |
| $50,001 - $75,000 | $800 |
| $75,001 - $100,000 | $900 |
| $100,001 and up | $1,000 |
While a 203k Consultant is recommended for facilitating a 203k loan, a consultant is not needed for a Streamline(203k) loan.
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