Contractors will play a vital role in the renovation process and believe it or not, they are a part of the financing process too.
Since you’re borrowing funds to buy and renovate a property, we’ll work with the contractor too on the process. We disburse funds directly to the contractors and we make sure everyone is on the same timeline as well.
When you look for contractors, it’s important that they are licensed and insured. They must also do this full-time and have credentials. They can’t be someone doing this on the side or even you doing the work.
The key is to find contractors that have worked with the FHA 203K process before as they’ll be familiar with the timelines and requirements, offering the least amount of stress throughout the process.
It’s a good idea to get quotes from at least 3 contractors so you can compare costs and see which one best works with the FHA 203k loan process. Once you’ve found your contractor there are documents that will need to be filled out: