|
HUD 203(k) Consulting
The 203(k) consultant is someone who has been designated by a HUD field Office to act as a consultant to borrowers for the purpose of completing the Work Write-Up/Cost Estimate and the required architectural exhibits. Any format may be used for the Work Write-Up documents; however, quantity and the cost of each item must be shown, as well as a complete description of the work for each item on a room-by-room basis.
To be designated, the consultant has met the experience requirements for HUD approval and has been trained in the Work Write-Up format of the 203(k) program. By using an approved consultant, there is no need for a Plan Reviewer to check the Work Write-Up. However, unless the consultant is also on the HUD approved fee panel inspector, he/she cannot do the follow-up inspection for draw approvals. In general, most consultants are fee panel inspectors who have HUD approval to also act as consultant. The fee schedule as set by HUD for a complete Work Write-Up with all required exhibits is as follows:
Fee/ Cost of Repairs
$ 400/ up to $ 7,500
$ 500/ $ 7,501 to $ 15,000
$ 600/ $ 15,001 to $ 30,000
$ 700/ $ 30,001 to $ 50,000
$ 800/ $ 50,001 to $ 75,000
$ 900/ $ 75,001 to $ 100,000
$ 1,000/ over $ 100,000
An additional fee of $25 can be charged for each additional unit in the property under the same FHA case number. For this fee, the consultant inspects the property and provides all required architectural exhibits.
Consultants may offer to complete Work Write-Ups for less at their option.
The consultant may occasionally require engineering, structural, architectural, or other exhibits/inspections that require an outside professional. The cost for such exhibits/inspections is above the regular fee and may be financed on Line B6 of the Maximum Mortgage Worksheet.
The consultant may also complete a "feasibility study" which is a quick home inspection of the property with "rough estimates." The fee guideline set by HUD is an additional $100.
To complete the Work Write-Up, the consultant will meet with the borrower at the subject property to complete a walk-through inspection. The consultant will note all FHA minimum property standards and required repairs and will find out what additional repairs, renovations, upgrades, etc., the borrower may want. The consultant must also make sure the property meets the $5,000 minimum required/eligible repair guidelines. Finally, the consultant must include a termite and moisture report with the compiled Work Write-Up. |
