203b repairs done by homeowner
Hello!
My husband and I just closed on a HUD home with a FHA 203b loan. We have an escrow holdback for the required repairs (~$5k) and had a contractor lined up. The contractor backed out and we are unable to find another licensed contractor to do the work. The repairs were things like laying flooring to cover subfloor, replacing thermostat, patching a piece of drywall, painting 3 fascia boards, and a very small roof leak from a nail hole....very minimal work. The only exception was a requirement that the windows all be scraped and repainted. These windows are from 1940 and unrepairable. This was coming from several contractors.
Here is my question....
What happens if we do the repairs ourselves? Are we out the 5k and just go about our day or can something detrimental happen with our financing?
The other bids that we got were upwards of $10k, one charging $350 to replace the thermostat?! We've already purchased new windows and flooring, I replaced the thermostat, and we patched the miniscule roof leak. Where should we go from here if I can't find a contractor to do the work? My loan officer and real estate agent are at a complete loss and have no idea what the repercussions are or if there are any. She thinks it might be possible to have that 5k credited back because it won't have to be paid out to a contractor but again, she can't seem to find an answer.
Please help!
Kindly,
Jennifer