FHA 203(k) general contractor in Metro Detroit?

Question

This is a VERY proactive post, but I know finding a general contractor can take some time so I wanted to put a pin out now.

Does anyone have either a recommendation for a specific general contractor who works with FHA 203(k) loans, or tips on how to find one?

Richi Brown · Answer

I did a 203k loan back in 2020, it was one of the toughest deals I closed because finding licensed contractors willing to take on the job was tough. That combined with the extra guidelines/pay schedule set by the bank made it less appealing for contractors to take on the job compared to other clients who were not using bank money to finance their rehab.

Ultimately it worked out really well, I got the deal to close and I forced a good bit of equity on the front end. This deal was probably my favorite I have done despite the headache and frustration. Just wanted to send that encouragement and let you know that it may not be a quick and easy transaction but it is worth the hassle!

Lastly, I ended up using Home Remodeling & Repair, I believe the owner's name is Chuck Donaldson. They were pretty slow and the rehab went over the original projected timeline (like most rehabs tend to do). But it was also my first deal, and there were supply chain issues. So, I have to take some ownership on that and cant blame it 100% on them. Given how unique of a loan product this is, I would certainly use them again on a 203k loan and recommend reaching out.

If you have any tactical questions on executing that loan, feel free to reach out whenever!

Drew Sygit · Answer

@Caity B. google Seabrook Satterlund

Paul Welden · Answer

@Caity B.

There is an online directory of contractors who have been educated & tested and independently vetted for the 203k and are called Certified 203k Contractors, but it doesn't look like there are any in Detroit.

As @Richi Brown said, the 203k is a tough program for contractors because the compensation structure is not contractor friendly, and the paperwork and admin side of things can be daunting.

Caity B. · Answer

Thank you so much for the thoughtful response. Can totally believe your struggles, the red tape reducing the contractor pool has been my main concern (along with project costs). I'm glad to her it worked out so well for you regardless, bet you learned a ton. Thank you for the encouragement, the words of caution and the recommendation! I'll be sure to reach out to them as well and will keep your offer in regard to questions in mind :)

Caity B. · Answer

Thank you! I went in and introduced myself this morning :)

FHA 203(k) general contractor in Metro Detroit?

FHA 203(k) general contractor in Metro Detroit?

Most Popular Reply

5 Replies