By Mike Young
I received a call from a home buyer the other day. She asked for some
assistance on her 203k loan in process. Turns out the lender was doing
their first 203k and chose a consultant who was just getting started and
had no clue as to what he was to provide, and of course the borrower
was doing her first 203k.
What is wrong with this picture?
Should be pretty obvious to everyone by the title of this post. While
everyone starts with their first step, the lender should have hooked up
with a proven team since they were new. The consultant didn't want to
turn work away but could have called a seasoned consultant and offered a
portion of the fee to gain some OJT (On the Job Training). I know our
team does that in the interest of serving the client and lender more
The Mike Young Team has been around since 1994 helping clients and
lenders get their 203k projects closed faster. We just opened our newest
office in St Lucie County FL with our good friend Pete Campbell at the helm. Give him a shot, I think you will like the results.
We were able to assist and put the paperwork in order for this
consultant and help get that loan closed and "no, we didn't take a fee".
It isn't about us, it is about the client getting what they expected.
Give us try. If you have a problem closing your 203k loan feel free to
contact us and we'll see what we can do to help you get it back on
Can I do the work on my FHA 203k project?
Many lenders will let you do the work on your project provided you are a licensed contractor in your state.
The real question is "Should you do the work on your FHA 203k
project?" and the answer to that is NO. You wouldn't believe how many
home owners think they can do just as good as a contractor. What usually
happens like in one case we have right now is that the owner's are
holding up the completion of their own project by not telling us what
they had in mind.
What started out to be a simple project was delayed over and over
again when the borrower's decided to remove all of the drywall in one of
Now what? You guessed it, the owner is all upset with the contractor
because the contractor said this project would be complete in three
months and we are now at six months and it still isn't finished.
are not taking any responsibility for all this new work they created or
the fact they were in the contractor's way the entire time.
If you want your project to go smoothly, be honest, don't provide
changes in the scope after close of escrow. Stay out of the contractor's
way, don't move all your stuff into the house if we have to provide
Most 203k projects go very smoothly, it is just when these type of
surprises come about that delays will happen. We have another one where
the borrower moved all their furniture into the garage. That seemed fine
but the roof was then removed to the skip sheathing and lots of
debris fell all over the stored items that no one thought to cover up.
If you are planning a renovation project, plan to be out of the home
till the work is completed if at all possible. If not, the cover your
stored items with plastic to protect it and store it where it mostly
likely doesn't have to be moved during the course of construction.
If you need help contact our local office here in Fort Pierce where Pete Campbell is waiting to help you