The contractors are paid in a series of draws by the borrower's lender through escrowed funds. At closing, the lender places the rehab/improvement funds into an escrow account. More detailed information is available in the 203k Contractor Education Course.

The Consultant inspects the property and prepares a feasibility study, architectural exhibits, work write-ups, cost estimates, draw request inspections, and change orders; and ensures that all work is performed in compliance with FHA requirements.

15 plus years as a real estate investor and builder in the NNJ real estate market. Please see our 5 star reviews on Google and Houzz under Oliveri Development LLC.

Yes we are licensed and insured and we continuously update our 203k HUD consultants with up-to-date requirements.

Yes we pull all permits to complete the job as per uniform commercial code.

203(k) renovations are complex. Fixer-uppers, in general, need a greater number of complex repairs than other properties, so you will need a contractor who understands how to renovate a home essentially from scratch. Ideally, they should be confident in their ability to take the house down to the studs and start over. In addition, your contractor needs to understand and abide by the loan requirements and your lender. Look for a contractor with experience handling multiple major rebuilds and 203(k) renovations specifically.

203(k) loans require contractors to cash flow the project. This guideline means you will need to make sure the contractor has the money to fund your project. The way these loans work, if the property requires less than $35,000 in renovations, a check for half the renovation costs is sent to the borrower and contractors 10 days after closing. For renovations over $35,000, the contractor needs to fund the first half of the renovations themselves and contact the Federal Housing Administration (FHA) consultant for the project to inspect the work so that the lender can release the funds for the first phase of the project.

Your contractor must determine the costs for your project. This budget is important because the total loan amount will depend, in part, on the cost of renovations. 203(k) loans do have a contingency reserve equal to 10% to 20% of the expected renovation budget. You may have some leeway if your home needs unforeseen renovations, but you need a contractor who can accurately estimate the total costs.

203(k) loans require that renovations begin within 30 days of closing, and work must be completed within six months of the start of the project. Your contractor should be able to provide you with a clear timeline and must be able to complete the renovations within the 203(k) loan requirements.

Some lenders assign a 203(k) consultant to oversee the home inspection, assess the renovation estimates and supervise the project in general. Look for a contractor who has worked with 203(k) consultants and knows how to provide the consultant with the information they need to do their job.