FHA 203k loan in Fort Lauderdale

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    Supreme Lending does 203k’s. A 203k contractor “certificate” is irrelevant, that’s just done private course/certificate that means little, other than they are already supposed to be familiar with it. Your Lender has to approve the contractor, a simple process for any licensed, insured, experienced contractor.  

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  • Paul Welden
    Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y

    @Amitai E.

    There are 20+ FHA lenders in your area that have done at least 1 FHA 203k loan in the past 12 months and 7 of them have a physical office within 50 miles of Fort Lauderdale.

    You can find them by searching through the 2 databases on HUD.gov.

    There are contractors that have earned an accreditation called Certified 203k Contractors. And while it's not required by HUD/FHA, it is better to work with a contractor who has been educated on the 203k or had their 203k experience and financial ability to afford the start up costs and ongoing expenses independently verified.

    You're only as strong as your weakest link ... select your partners wisely.

    @Wayne Brooks 

    The lender does not approve the contractors. This is unfortunately a common misconception. According to HUD SFH 4000.1, the borrower actually selects and approves contractors and the lender is only responsible for assuring that the borrower's selected contractor is licensed, insured, and has experience with the type of rehab the borrower wants done. Lenders don't educate the contractors on the FHA 203k timelines, guidelines, paperwork, processes, compensation structure, etc.

    A certificate of completing of an education course on the 203k is quite helpful to both the borrower and the contractor and it's certainly not irrelevant to be as educated as possible on a subject matter, especially the 203k. 

    Reference HUD SFH 4000.1.

    Hope this helps! 

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    @Paul Welden We’re on the same page….you use verify, I used approve….they do have to “accept” them.  

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  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    5y

    @Wayne Brooks I’m not sure why @Paul Welden tried correcting you. That’s not nice. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5126 Reviews
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  • Paul Welden
    Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y

    @Raymond J. Rodrigues I corrected a common misconception that the lender actually approves contractors for the 203k. 

    There was only 1 lender that I know of that did something resembling approving/accepting the contractor for the 203k, and that was Wells Fargo. They would actually run a credit check and a default loan check on the contractor. Other than that lender, I've never heard of any lender doing anything resembling an approval/acceptance of the contractor. 

    All that 203k lenders do is the same thing that the borrower does, which is verify the license, insurance, and experience. This is merely a verification that the contractor meets the basic requirements of the jurisdiction to preform residential remodeling, which is the same thing the borrower already did when the borrower selected them. 

    Sorry if I came across as "not being nice," but there are a lot of misconceptions out there about the 203k and they can get some people confused. I was simply trying to help. 

    Reference HUD SFH 4000.1.

    Hope this helps! 

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