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

By
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

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

Skype name: the203kconsultant

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Charlie Sessums 06/06/2014 12:52 AM
Topic:
Home Improvement
Location:
California Los Angeles County Lancaster
Groups:
Keller Williams 'Rainers
Century 21 Network
Coldwell Banker Group
Oakland Real Estate
Livermore, California
Tags:
los angeles
palm desert
la habra
hud fha 203k consultant lakewood

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Rainer
198,783
Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

Great information, thanks for sharing.

Have a Big day,

Randy

May 07, 2014 06:23 AM #1
Rainmaker
615,886
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
Rainmaker
592,740
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
Rainmaker
615,886
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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