Real Estate Investor · Victor, NY · Member since 2013 · 49 posts · 3 votes
Hello,
I am looking for some suggestions for contractors and GM's in the Monroe/Livingston County NY area who will work with the 203k loan program. I am evaluating a duplex and considering an offer that would be financed with a 203k loan. One of the biggest hurdles in my research has been building a list of quality contractors who will work on a 203k project. The mortgage broker and real estate agent have not had a lot of insight.
Any suggestion or pointers would be greatly appreciated!
Rochester, NY · Member since 2014 · 152 posts · 65 votes
11y
That's a great question and one I would also like to know the answer to. I want to say that the 203k lenders provide you with a list of providers who do this but I could be wrong. Maybe ask the lender?
Rochester, NY · Member since 2013 · 3 posts · 0 votes
11y
What work are you planning on having done? That may help with suggesting contractors.
If I remember correctly from my 203k loan it's illegal for your lender to suggest any contractors for you to use with your loan.
Finding a contractor for a 203k is very similar to finding a contractor in a normal situation but scheduling for them to see the property is more difficult. You should get bids from multiple contractors (try to schedule all for the same day and approximate time), ask for references, etc.
Real Estate Investor · Victor, NY · Member since 2013 · 49 posts · 3 votes
11y
Your spot on about the lender not being able to make recommendations.
I will need some interior flooring, a couple sheets of drywall, propane furnace installation(vents in place), and siding on the upper half.
My concern about the contractors was mainly about how the draw works. If I were a contractor I am not sure I would want to wait a month to get paid and go through all the paperwork the 203k requires. This probably lessens the amount of options I would have and raises the price.... Figured I would check and see if there were any local contractors who specialized in this work or had experience with a 203k property. I would think think that for some of the more stable and better funded GC's, this would be a good program since FHA pays the bills ect.