Broadhead

Remodeling FAQs for 203k Loans

When should I get an estimate for the work I am looking to have completed under the 203k streamline?
We prefer that the initial home inspection has been completed. Due to the fact that this is a FHA loan, there are specific requirements that the home must meet in order to move forward with this type of loan.

After the home inspection is completed, we can have a representative out immediately to review the cosmetic changes that the potential homeowner is looking to make along with any items the home inspector deems necessary for FHA.

Why should I go with a General Contractor for a 203k streamline loan vs. multiple contractors?
A general contractor is hired for a number of reasons, primarily because they are ultimately responsible for coordinating every aspect of construction that is taking place on the property. A general contractor also ensures that any sub-contractors on the job are licensed, bonded and insured and they have quality workmanship.

With the 203k streamline specifically, the disbursement schedule only allows for two draws (an initial disbursement of up to 50% and a final disbursement). If a homeowner is trying to perform the work utilizing numerous sub-contractors, they may have difficulty in locating sub-contractors that are willing to work under strict pay conditions. The sub-contractors also must accept the fact that they won’t get a final disbursement until ALL work has been completed.

Who provides all the documentation for the 203k?
Your mortgage company will provide all the disbursement forms and homeowner-contractor agreements based on the lender that qualified you, in which we will complete and sign along with the potential buyer.

Broadhead Contracting will provide you with other necessary documentation required for the loan, such as a W-9 form, Copies of our Registrar of Contractor licenses and bonds, reference letters, and business resume. Each lender may require different documentation.

Why should I work with Broadhead Contracting on a 203k?
We at Broadhead Contracting have worked on a number of 203k projects. Working with realtors, mortgage companies, and potential homebuyers, we understand the process from start to finish. We are familiar with what the lenders are looking for in an estimate and we understand all the documentation required in order to close the loan on time.

203k’s are usually very time sensitive, and we commit to you that we can have a representative out to estimate the project immediately and can have an estimate to you within 24-48 hours after the initial site meeting.

Contact us today for a free remodeling estimate, so you can start making memories in your new home!