A Feasibility Analysis is a quick inspection of the property, with a “rough estimate” of work that will be necessary to comply with HUD requirements. The cost of the Feasibility Analysis is not included in the total 203k Consulting Fee as it is a separate process and requires a separate trip. In many cases this is the best way to start out when a buyer is choosing a 203k loan. It quickly determines the extent of ancillary repairs and exposes possible structural deficiencies which can require the buyer to use the Full 203k program.

A Full Work Write Up includes the following: a) A detailed General Description of the property "as-is" in a narrative form; b) the Scope of Rehabilitation that will include a narrative of required repairs and any additional work requested by the client; c) all applicable FHA forms for review, contractor and consultant agreements and Architectural Exhibits for the work including a 203k Self-Help Agreement; d) a Write Up Synopsis which includes a summary list of who's doing the work, the job total, fees and expenses related to the rehab portion of the work; e) a detailed HUD/FHA Home Inspection Report; f) a complete Job Specifications and Bid request form to gather bids from; g) an initial Draw Request package with Re-Cap of Sub-Totals

The use of a Consultant for a Streamline is called a Plan Review. To use this product you MUST have a contractor bid(s), pest report (unless waived by the lender), and a home inspection. If these are not available upon our site visit this isn't a Streamlined (k) inspection and will be considered a Feasibility Analysis and charged accordingly.

Plan Review Fee: Prior to the appraisal, the Consultant must visit the site to ensure compliance with program requirements. The utilities must be on for this site review to take place. The fee is as follows: Cost of Repairs/Fee is $200.00 plus mileage. In many cases this is also a good way to start out when a buyer is choosing to use a 203k loan. It quickly determines the extent of ancillary repairs and exposes possible structural deficiencies which can require the buyer to use the Full 203k program.

Although Streamlines are most popular among lenders and brokers because of diminished paperwork, they're sometimes "fraught with peril" to close because of the inadequacy of client knowledge, preparations and expectations aside from the fact that they're told "and you don't need a Consultant". That's right you don't but you don't need a Realtor either or a contractor and on and on. The reality is that the program, no matter which one it is, will always run better if organized and administrated properly by professionals in every capacity. I encourage my sales and financial resources to advocate for the use of a Consultant because more transactions are actually completed especially in this current financial climate when speed and accuracy are everything. Although a loan may be Streamline, a full Work Write Up should be an essential tool that will insure success. If clients knew they could include consultancy fees into the mortgage more buyers would make use of this professional service.

Please contact us to help you put your “Team” together and to answer any questions you might have regarding the program.

Service Fees
The Fee Structure for consultant services is based on the cost of renovation and has been established by HUD up to $125,000 as follows:

Consulting Fee             Repair Cost
$200.00                        Feasibility Study*
$400.00                        $5,000 to $7,500
$500.00                        $7,501 to $15,000
$600.00                        $15,001 to $30,000
$700.00                        $30,001 to $50,000
$800.00                        $50,001 to $75,000
$900.00                        $75,001 to $100,000
$1,000                          $100,001 to $125,000
$1,250                          $125,001 to $150,000
$1,500                          $150,001 to $175,000
$1,750                          $175,001 to $200,000
$2,000                          $200,001 and up

The above fees are for a Full 203k.

Trip charges include mileage @ 48.5 cents per mile (for over 30 miles roundtrip)