Wow, HUD is getting very good at the approval process. There has been a distinct change of late in the approval process likely due to the larger number of FHA 203k renovation loans being processed but we are seeing several new consultants being approved in four days and less. I remember when Carlton Segars from Columbia SC applied it took him about ninety days to get approved. While his was unusually long these latest ones are just as unusually FAST. I love it.
Another item that we see happening from all of the HOC's right now is
they are asking the new consultants if they are able to create
architectural drawings... that is NOT a responsibility of a 203k
consultant. They need to read their own guideline. It actually says a
consultant is required to create the "Architectural Exhibits" which may
or may not contain blueprints. Architectural exhibits are what we call
all of the paperwork the consultant puts together for the lender to help
get a loan closed. If we need architectural drawings we have the client
hire a draftsman or architect to get them done.
We do, however, quite often draw simple line drawings using a CAD
program to show room addiiton or deletion of an interior wall.
The FHA 203k loan guarantee program is finally being recognized for
what it is... the fastest and most economical way to take a home from
shambles to a revitalized home in a short period of time. The fact that
you can use it to add on to any existing house or just make repairs to
an existing 1-4 unit building is wonderful. Last week we had four
closings that were all under 4% interest. Amazing to get construction
money under 5% fixed for thirty years, don't you think?
Live/work from warehouses - no problem
6-8 units turned into 1-4 units if the zoning will allow - no problem
Old gas station turned into a living unit - no problem
A barn turned into a home - no problem