1. Buyer Finds a House:
    The process starts with a buyer finding a house that “just needs something” or may require certain items to be fixed before it can be eligible for financing.
  2. Mandatory Repair Items:
    For limited 203ks a home inspection is accepted. However, for 203k (35k++) you need a HUD Consultant. The deficient items on the report will need to be repaired to be eligible for financing (typically these are health and safety).
  3. Wish List (kitchens etc.):
    Next, the contractor reviews the property, goes over the mandatory repair list and adds WISH LIST items.
  4. Contractor Quote:
    Each line item of work that needs to be done must be itemized with materials and labor costs separated.
  5. Packet to Lender:
    A packet will be sent to the lender including the consultant write-up, contractor write-up, contracts, permits required, contractor resume, W2, License, and Insurance information.
  6. Appraisal:
    Since the appraisal may uncover additional deficiencies, it is important that the original inspection and work write up includes everything. Renovation costs are added to the value of the house (with certain restrictions).
  7. Lender Processing:
    At this point in the process the inspection report, appraisal, and write-ups will be processed and verified. These documents all need to contain the same mandatory repair list.
  8. Closing:
    Buyers should be aware that closing can sometimes be delayed, so they may need to wait until work is completed before they can move in.
  9. Work Starts:
    HUD wants work to start in 30 days, but permits will need to be issued which usually takes 1-2 weeks
  10. Progress Inspection:
    The HUD consultant will make routine progress inspections and submit draws to the lender who will then issue payment to the contractor.
  11. Move In:
    You are now all set to move in!