203k News

image1

Top Stories

 

  • How do I know if my bid is a fair bid for my area?             Simple solution is to get your own bid by going to www.203konline.com then click on the second button on the left "Project Estimator" to input your project information for a good bid very fast on your project that is right out of the HUD Guideline it takes you HomeTech Cost Estimator which is what HUD suggests should be the service used for 203k loans.
  • How do I find a contractor or new contractor for my project?
    Your consultant will be the first source for contractors. You can also go to 203kcontractors.com where you may find a contractor. These contractors understand the program and have the money to get your project started while they wait to get reimbursed. This is important as many contractors don't understand the payment policy and therefore don't have the patience or financial backing to wait for their money to be reimbursed.
  • How do I fire my contractor?
    This should be a last resort. You must be very careful and possibly seek legal advise before firing a contractor. They do have a contract with you to complete your project in a professional and workmanlike manner. Remember those words. If you do this incorrectly YOU may have to pay the original contractor even though you may have already paid a new contractor to do the work.
    • Step 1, try to resolve the problem
    • Step 2, notify the contractor, in writing, preferably a letter that you are not happy with his work and list each item that you are siting as the reason for firing him/her. You need to have "just cause" for firing him so you are laying the foundation for your action. Possibly sub standard work, not showing up for work as your contract calls for, playing loud music during the day while getting complains from the neighbors, workers are using foul language. Just list whatever these might be and be prepared to back it up with evidence.
    • Step 3, Let your consultant and lender know what is going on by copying him/her with your letter to the contractor.
    • Step 4, find another contractor to do the job for the money that is left in the project funds. If not YOU will have to make up the difference from contingency or your bank account. You can enlist the aid of your consultant as they will typically have a number of contractors in an area that you can use to complete your project. You can also go to 203kcontractors.com where you may find a contractor.
    • Step 5, get the new contractor validated by the lender. This process takes about a week and there is no guarantee they will be validated.  Always check with an attorney if you want to fire a contractor.

How do I fire my 203k consultant?

 Firing a consultant is one of the easiest things you can do. YOU are the boss, you can just not call him and when it comes time for the next draw, call another consultant. I don't like this way because it isn't fun for the consultant. I recommend that you have a talk with the consultant to explain WHY you might want to consider firing them from the project. Maybe you can resolve it. That consultant actually knows more about your project than anyone else you might bring in so he or she is the most knowledgeable consultant you might use. Be sure you want to do this before you make such as decision. 

My contractor isn't showing up to work, what do I do?

 Your contractor has a contract, if you used the HUD recommended contract, that he agreed to start the work and get his first draw within 30 days of closing, and then have someone on the job each day thereafter till it was completed. In any case YOU are his boss and YOU must call or email the contractor and tell them to get someone out here on your project. I recommend that you do this in an email so you have a paper trail that you actually did tell them to get the job done. Call us if you need to talk about it 877.207.6565, while you are saying your name it is hooking us up so hang on a minute. If I don't pick right up please leave your name and phone number and I'll call you back ASAP. 

How does a contractor get on the HUD list for 203k?

 There is no HUD list for approved contractors. There is, however a list for "unapproved contractors" that are  no longer able to work on government projects like the 203k and FNMA HomeStyle loan programs.

  • If you are licensed in a state where licensing is required then you are technically qualified to work on a 203k
  • Get validated by the lender  takes about a week where the lender will check out the references, license (if licensing is required in that state), and insurance of the prospective contractor. This is to see that all is in order.