A significant portion of my business focuses on the assistance with 203K, Homepath, and other construction loan programs. Typically, whenever I get a call about an estimate for one of these programs, it is later in the loan process and urgent to be completed without holding up the loan. This is one reason why I like to tell Owner’s and/or their loan officers to get a contractor involved in the process as soon as possible. It helps to narrow down project scope decisions and provide more accurate estimates.
However, since buying real estate can have a number of hurdles to jump over, I realize the contractor may still be brought in later in the process. Fortunately, there are a couple ways to handle the urgent need to get an estimate with these programs. Typically, the need for the exact scope determination and itemized cost is not always necessary early on and can be modified slightly throughout the loan process. The important item to determine is the total cost budget. For example, with a 203K Streamline loan, the maximum rehab loan amount is usually $35,000. If the Owner is planning to take advantage of the full amount, we can help expedite the paperwork by providing a generalized scope and estimate/budget that totals their max. amount. Usually, an estimate like this can be provided with 24 hours. While the loan is being processed, the contractor can work closely with the Owner to determine the final scope of work and make sure the project will stay within budget.
Overall, this approach saves time, effort, and expedites the process. I have recommended this idea to many Owners and lenders and it has worked very well.
If you need any assistance with a 203K or other Construction Loan renovation in the Tampa Bay area, Hybrid Construction has the experience and is happy to help.
203K Loan Contractor
Hybrid Construction LLC