Every 203k should be a Standard 203k... no more Streamlined k's

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

It is my opinion based on fact that every FHA 203k loan should be a Standard or Full 203k. In 2005 the Streamlined k came on board as there were those in the industry that felt many small renovation projects didn't really need a "consultant". 

Now after about 9 years the Streamlined k accounts for 98% of the problem 203k loans in the industry. 

I met a client today who was told by everyone that they should use  a particular contractor on their Streamlined k loan. Her contractor bid under $2,700 and the one that they were told to use came up with a whole lot more work... NOT, but charged nearly $10,000. Remember that 50% of the construction cost is paid to the contractor up front.

In this case if the work was really only worth $2,700 and they got 50% of $10,000 they have already been paid twice what the going price was. Is it a wonder the contractor then did shoddy work and left the client hanging? Wow, the consultant earns their money, use one.

If you are going to recommend a contractor, don't recommend your spouse. Keep it at arm's length.

Posted by

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

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Re-Blogged 1 time:

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  1. Charlie Sessums 06/06/2014 12:52 AM
Home Improvement
California Los Angeles County Lancaster
Keller Williams 'Rainers
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Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

Great information, thanks for sharing.

Have a Big day,


May 07, 2014 06:23 AM #1
Mike Young
203kOnLine.com, covering the USA - Las Vegas, NV
FHA 203k Consultant 916-758-1809

Thanks Randy

May 07, 2014 07:55 AM #2
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Hmm, they won't let anyone but licensed contractors do the work here and all the work is inspected before money is paid out.

May 16, 2014 01:32 AM #3
Mike Young
203kOnLine.com, covering the USA - Las Vegas, NV
FHA 203k Consultant 916-758-1809

Than, Where they have licensing for contractors that is a fact. The consultant is quite often the inspector during the process too.

May 16, 2014 08:56 AM #4
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Mike Young

FHA 203k Consultant 916-758-1809
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