All Forum Posts by: JC Ceba

Hi there, 

I'm trying to gain a better view of the entire 203k loan process to avoid surprises for major rehab purposes. Based on my research, this could represent a basic yet inexact roadmap of all the steps. Can you please comment or clarify based on your experience? Also,  below I have some basic questions:

-Process or possible Roadmap
-Get loan pre-approval letter
-Issue formal offer
-Get offer accepted - go to contract with a 35 day term
-Property inspection
---Key areas: building with solid ductwork, plumbing, structural, electrical, etc.
-Obtain blueprint from seller (if possible)
-Negotiate with seller any discounts
-203k Consultant is selected by lender
-Agree on pricing from the 203k Consultant (Work Write-Up-WWU/SOR)
-Proposals from a certified 203k contractors; one or more have to be accepted
http://203kcontractors.com/
-203k contractor meets all timing and guideline requirements, paperwork, estimate format, MPS & MPR's, etc
-HUD consultant walks the property with the contractors bid and makes sure it checks all the boxes for FHA requirements
-Appraisal post renovation
-Lock down rate for 30 days more (optional)
-Insurance policy quotes

Who gets the certificate of occupancy and is it for?
To what degree am I supposed to pay contractors in advance?
Can you add an ADU as part of the scope of work of a rehab?
Where or how I can find 203k approved contractors?

Call inspectors and contractors listed as 203k approved service providers. Ask them which lenders really have extensive experience with 203k loans. Change strategies as need it. In my view, people tend to exaggerate in online reviews (if you find them) but not over the phone. Good luck.