Contractor's Handbook for the FHA 203k
an excellent resource for contractors, lenders, and borrowers
Streamlined "k"
Many lenders are now treating every 203k as a "STREAMLINED k" initially. In most cases it will remain a 'streamline'
Contractor goes out to see the property first and provides a bid on the work they decide needs to be completed. Whenever the cost of repairs exceeds $15,000 a consultant, plan reviewer, or appraiser MUST be brought in to review the bid and verify it is in line with the guidelines. This just makes good sense.
The Consultant then goes out for a plan review to be sure there isn't anything else that needs to be added to the scope of work. Creates the draw request, and other necessary contracts and turns them in to the lender.
The loan closes and the work is completed. The nature of a Streamline 203k allows the contractor two draws if they choose to exercise that feature. Up to 50% for materials only at the start of the project, and one draw upon completion when the Consultant does a final inspection and turns in a "compliance inspection report"
704-454-5684
Click here Mortgagee Letter 2005-50 to get the complete lowdown on the Streamlined "k"
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