Published 11/5/2024 

#Contractors

#203k loan officers

The FHA 203k loan program allows homebuyers to purchase and renovate a property with a single mortgage. While there's no official "approved 203k contractor" designation from HUD, it's crucial to choose a qualified professional.

Licensed Contractors are Key:

HUD allows any licensed contractor to participate in FHA projects, assuming they haven't been debarred by the government. However, not all contractors are created equal. All states don't require contractors to be licensed. 

Protecting Your Investment:

Here at Mike Young Team, we prioritize client protection. We understand that even reputable contractors can experience performance issues. Here's how we ensure a smooth renovation process:

• Pre-qualification: While HUD doesn't have an approval process, your lender will conduct thorough checks to ensure contractors are licensed and have a positive track record.
• Monthly Draw Inspections: We perform inspections every 30 days (per guidelines) to verify completed work and ensure progress aligns with the project timeline. Don't let your contractor slide to far beyond that 30 check point. It is for your protection.
• Signed Lien Waivers: Contractors provide signed lien waivers, guaranteeing they and their subcontractors have been paid for completed work.

Consultant Role: Keeping You on Track

Our role as consultants / inspectors is to guide, not manage, your renovation. We conduct monthly inspections (sometimes bi-monthly) to verify progress and facilitate timely payments to the contractor, ensuring healthy cash flow for the project.

Want to Learn More?

• FHA 203k Loan Program: www.203kOnLine.com
• Needing Help with Your 203k Project? Call 877-207-6565 and talk to Sean or Mike, they will put you back on track.
• Looking for Quality 203k Software? 877-207-6565 Mike will guide you.

By choosing a qualified contractor and working with a knowledgeable consultant, you can ensure a successful 203k renovation.