HUD is the acronym for the U.S. Department of Housing and Urban Development. HUD offers low-cost dwellings and grants to assist families in getting decent housing. FHA, or the Federal Housing Administration, is a division of HUD that provides mortgage insurance for loans on single-family homes that are the main residences for eligible families.
A 203(k) consultant has been approved to operate as a consultant by submitting the requirements requested by HUD and the FHA. These requirements mainly consist of experience in the construction and home inspection industry that allows the consultant to function in the capacity required in the 203(k) rehabilitation loan process.
Once the requirements have been met, best immigration consultant in canada HUD certifies the individual as a “203(k) Consultant”. This certification allows the individual to operate as a consultant on loans insured by the FHA. The consultant is issued a certification number and the consultant’s position can be researched on the HUD website by either looking up the certification number or the consultant’s name.
The loans are typically originated by an FHA approved lender and once the borrower has met the requirements for the loan and the property qualifies for the program, the loan is issued and the repairs and improvements can be completed. See below for the HUD website that lists all approved 203(k) lenders by area.
What Does a 203(k) Consultant Do?
There are two kinds of loans under the 203(k) loan program. The first one is the “203(k) Streamline” and this can be used for minor repairs and cosmetic upgrades, but not for more extensive repairs or repairs concerned with structural repairs and upgrades. This loan has a maximum amount of $35,000. A 203(k) Consultant is not required for this type of loan, however it is recommended to make the procedure smoother.
The regular 203(k) loan covers more extensive repairs, additions and structural upgrades. The maximum amount for this loan varies by neighborhood.