203k loan - help with contractor's estimate

8 Replies

Does anyone have an example of what a contractor's detailed estimate of work should look like for the bank? My contractor just gave me a list of things to be fixed with $37,000 written at the bottom of the page. I don't think that will fly as a detailed estimate for the bank. 

Thanks for your help!

I am in the process of getting a 203k loan as well. Ask the lender to send you some example contractor quotations for past loans

I am in the process of getting a 203k loan as well. Ask the lender to send you some example contractor quotations for past loans

I am in the process of getting a 203k loan as well. Ask the lender to send you some example contractor quotations from past loans

@Theo Hicks I emailed my lender earlier today but haven't heard back from her. In the meantime I did a lot more digging online and found some helpful things. For anyone else who's reading this thread you can check this out. 

http://www.slideshare.net/afrmarketing/fha-streamline-203k-powerpoint?related=2

Has "your contractor" been approved by your lender yet?

From my experience (I could be wrong) there isn't a format but the estimate should list details like the materials to be ordered and the hours of labor needed for each repair project (for example the kitchen cabinet installation or exterior doors) along with a cost listed for each line item. That is what my lender required. Having just a list of repairs to done and a grand total at the bottom wouldn't be enough detail for my lender. Hope that helps!

Just to add on to my last comment...Ask the contractor to redo the estimate with more detail and if he/she balks or stalls then find another contractor...that is a bad indicator for the $37K job he/she has ahead of them!

@Wayne Brooks My lender said that as long as he's a licensed contractor, which he is, then he can do the work. I'm getting the streamline 203k so he doesn't need special certification. I've seen his work and I'm pretty sure I can trust him. I've known him for about 10 years. It's just that he's got too much on his plate at the moment and I kind of pressured him into taking on the project. He hasn't done a 203k job before so we're just winging it. 

@Dante Pirouz I found an example of the form online and filled it out with most of the things he had on his list. I took out some work that didn't really need to be done, at least not right away. I also added some numbers that I could figure out for myself and he can fill in the rest. At this point I don't know that I could find another contractor. I have tight deadlines. I did let him know that if he doesn't want the job he can back out now. So who knows, I could be looking for a new contractor tomorrow! At which point, I'll be back on BP with a new question ;)

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.