If you've purchased a home that needs at least $35,000 in repairs, a 203K contractor can provide invaluable assistance during the bidding and project management process. When most homeowners take advantage of the FHA 203K loan program, they don’t possess the level of experience and knowledge that such extensive projects require. This is where the 203K expert comes in. These professionals are experts when it comes to building codes, construction, architecture, and more. Here are the details you should know before proceeding with your home renovation or upgrade.

What Does a 203K Contractor Do?

This special contractor is responsible for ensuring a project meets the U.S. Department of Housing and Urban Development’s (HUD) property standards. The contractor will also draw up paperwork that the lender will use in deciding the loan amount and underwriting the loan. The documents will contain a write-up that discloses the necessary repairs to be accomplished, any recommendations for further work to be carried out, and other repairs that the borrower wishes to be included, which may also cover the following:

• Recommended inspection schedule

• Cost of labor and materials

• Proposed amount of “contingency funds” to be used in case of cost overruns

Your contractor will inspect your property and discuss all these aspects. 203K contractors are often licensed home inspectors, architects, or general contractors. The requirements to be part of the official FHA 203K Consultant Roster are quite strict, and only those approved by HUD are included.

Why Do You Need One?

An FHA 203K loan makes it possible for you to do significant improvements to your purchased home.  However, if your repairs exceed $35,000, you would need an expert who can supervise extensive work. This is because you won’t be allowed to oversee the whole project by yourself, even if you’re a licensed contractor. But even if it weren’t required, using a 203K contractor is well worth it—you’ll ensure you have complete and accurate pricing and proposals, and you’ll have someone on your side who’s intimately familiar with the intricacies of the FHA 203K loan. Just think of it as having a project manager who can guide you through the whole financing and renovation process until your dream home emerges.

If you don’t fully understand the FHA 203K loan process, Piedmont Home Contractors Inc in Greensboro, NC, can help you. They are a reputable 203K contractor who also provides quality craftsmanship and excellent customer service. Whether you need kitchen remodeling, indoor allergy testing, mold remediation, or other remodeling and renovation services, you can count on them to handle it. Call (336) 545-8812 for a free estimate or visit their website for more information.