What is a 203K Feasibility study? (Philadelphia)
First you need to find a qualified 203K Consultant for your area. That consultant, or inspector, performs an initial inspection.
This initial inspection, also called a 203K feasibility study, determines the FHA required repairs for the property. It also includes any recommendations that the 203K consultant might have and any items that the buyer would like to add that aren't required or recommended. The report also includes cost estimates for all the items included in the study.
The 203K feasibility study is sent to the bank and to you, the client. It is used as a tool to determine if the 203K program is right for this property.
It typically costs around $150 + mileage fees for this initial step in the 203K process.If the bank approves the numbers and the client wants to proceed, then the 203K consultant will complete the entire work write-up which is all the paperwork required by the bank required for closing. This paperwork includes things like the fee schedule, summary of work, and other items required by the bank that is usually done behind the scenes and doesn't involve the client. The work write-up can cost around $500, but depends on the amount of work being done to the property.
You can find out more about the FHA 203K Program by visiting www.203kpa.com or visiting HUD's website. You can also click on Benefits of the 203K Program to learn why this might be the right program for you!
David Artigliere with ARTI Home Inspections LLC is a HUD-approved 203K Consultant in Southeastern PA including Philadelphia, Pottstown, Allentown, Reading, Lancaster & surrounding. He is available for home inspections and 203K consulting 7 days a week! He can be reached at (610) 220-1907.