Close your Limited 203k loans faster

By
Home Inspector with 203kOnLine.com, covering the USA S0289

Close your Limited 203k loans faster

Limited 203k loanLimited 203k loans are for properties with cosmitic repairs and NO STRUCTURAL issues. These are done by any lender who does FHA 203b loans and requires no additional training other than the 203b training most already have.

What is the biggest single hold up in closing your Limited 203k loans? Getting your sub contractor's to bid. That is the problem in most cases. The Limited 203kk doesn't have to take advantage of having a 203k Consultant, thought it is a cheap insurance policy. It then goes on to "allow up to five trade contractors" which implies that you should have five... you can use a GC (general contractor), you don't need to use trade contractors, but some lenders want to see your sub contractor bids even though you are dealing with a single GC.

How could this work faster? Simply use a GC rather than three to five trade contractors, This way you have one person bidding the job... not always, some contractors actually will get the subs together and together they will bid the job.

What else could you do? That 203k consultant who is not involved on most Limited 203k projects is an expert at bidding projects and has a stable of contractors who can do the work. The interesting thing is that many consultants, like myself bid for some contractors now and again even if if isn't a 203k project. We bid for some investors who need quick pricing for their investment properties, and we bid allot faster typically. We don't rely on getting sub contractor bids, we bid the entire project, all trades. 

Who is our client? If we are hired by the home owner that is our client, on a full or Standard 203k this is easy to follow. The client could also retain us to protect their interest on a Limited 203k  project and frankly it makes good sense to do that. Again it is clear that the home buyer or home owner is our client. We bid a job in a day versus most contractor's taking a week or two.

Now, what happens if the buyer doesn't want to use a consultant on their Limited 203k loan? We can still bring allot to the table but we can work for the contractor we just can't work for the borrower and the contractor on the same project or at the same time. The consultant understands the process and can bid faster than the typical contractor thus you get your Limited 203k loans closed faster.

 

 

 

 

uptown 2/4/2021

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

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