Contractors with 203k experience

6 Replies

I have a duplex under contract that needs rehab. Looking to do this under a 203k loan. There is a lot of red tape involved. With that being said I’m looking for A licensed GC with experience in doing rehabs under a 203k loan in Salt Lake City Utah. Does anyone in salt lake have any good recommendations? (They must be a licensed GC to meet the loan requirements). Thanks.

Originally posted by @Bryan Huntington :

I have a duplex under contract that needs rehab. Looking to do this under a 203k loan. There is a lot of red tape involved. With that being said I’m looking for A licensed GC with experience in doing rehabs under a 203k loan in Salt Lake City Utah. Does anyone in salt lake have any good recommendations? (They must be a licensed GC to meet the loan requirements). Thanks.

 Hi Bryan,

Typically what I will do is ask my HUD Consultant for a referral (lender picks the HUD consultant, borrower has the right to pick the GC). They know all the local & good 203k-friendly contractors, they know who is good at what and thus will be a good fit for the job, AND (this is important) will have a good idea of who is not at/near capacity. GCs are super busy here in the Bay Area, so that last bit might not be as vital in your area. A GC recommended by a HUD consultant will be familiar with all the red tape you are concerned about - this might be your first 203k rodeo, but it will not be this GC's first.

One critical concern with 203k is the budget. The standard dynamic where the GC gives you some lowball bid, that goes up 40% as the job goes forward, is NOT a good fit for 203k. You need an accurate bid up-front, not a pie-in-the-sky bid with whimsical assumptions that's going to blow up on you half way through! 

@Chris Mason thanks for your input. I did not think to ask my HUD consultant and just shot him an email now so hopefully that pans out. I’ve gone through a few contractors already. One disappeared on me and the other threw out a bid that is way too general to meet with the bank standards and was way over the budget that the HUD consultant has set which is a big no no like you mentioned.

Great advice, I'm in a similar situation. I've finally taken the leap and have a contract on a fixer upper in need of repairs in the Raleigh Durham Chapel Hill area. I've got a great lender and recently hired a 203k or HUD consultant. Neither of which have been able to recommend a single GC experienced with this process. Which has left me completely on my own to research and vett. I've inquired with roughly 15, yet have only heard back from two. I've done extensive research online, yet a licensed GC familiar with the renovation loan process seems like finding a unicorn. For such a great loan product I'm disappointed and discouraged to find out midway not finding a good GC in time may jeopardize my closing on my home. Any recommendations or leads appreciated.

I recommend you go to your local REIA and ask around...

Thanks @Adam Schneider , great idea. After my post I was able to get two recommendations from my HUD consultant which seems to have put my project back on track at the moment. I'll definitely put your advice to use, should I work up the nerve to do a renovation loan on my next deal. Thank you much!

@Chris Mason is spot on with his response. 

I have been involved with 5 203k deals here in CT in ‘17 and one thing I found that is critical is that the HUD consultant, GC, and the lender all have experience with not only 203k but working with each other.

This helps you get to the closing table faster as a buyer and helps the project go smoothly once the renovation starts.  

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