Can I do the work on my FHA 203k project?
Many lenders will let you do the work on your project provided you are a licensed contractor in your state.
The real question is "Should you do the work on your FHA 203k project?" and the answer to that is NO. You wouldn't believe how many home owners think they can do just as good as a contractor. What usually happens like in one case we have right now is that the owner's are holding up the completion of their own project by not telling us what they had in mind.
What started out to be a simple project was delayed over and over again when the borrower's decided to remove all of the drywall in one of the units.
Now what? You guessed it, the owner is all upset with the contractor because the contractor said this project would be complete in three months and we are now at six months and it still isn't finished. They are not taking any responsibility for all this new work they created or the fact they were in the contractor's way the entire time.
If you want your project to go smoothly, be honest, don't make changes in the scope after close of escrow. Stay out of the contractor's way, don't move all your stuff into the house if we have to provide floor coverings.
Most 203k projects go very smoothly, it is just when these type of surprises come about that delays will happen. We have another one where the borrower moved all their furniture into the garage. That seemed fine but the roof was then removed to the skip sheathing and lots of debris fell all over the stored items that no one thought to cover up.
If you are planning a renovation project, plan to be out of the home till the work is completed if at all possible. If not, then cover your stored items with plastic to protect it and store it where it mostly likely doesn't have to be moved during the course of construction.