One of the services we provide is FHA 203(k) and Fannie Mae HomeStyle consulting. Both of us are 203(k) Consultants, and we really enjoy this part of being a home inspector. Going back, one of the drivers that lead us to become home inspectors, is that it’s a required qualification for becoming a 203(k) Consultant. When we bought our house in Annapolis, MD in 2010, it was the dictionary definition of foreclosure. Thankfully, our Realtor was familiar with the 203(k) program, and was able to explain it well enough to get us interested. Unfortunately, the 203(k) Consultant she referred us to was not on our side. Due to the consultant and the contractor working in cohoots, we were taken advantage of. Thankfully, we were able to put them both out of business.

We came into this profession with the goal of taking care of our clients. One of the values we hold most dear is that of Integrity, and that’s the guiding principle of Veteran Home Inspections. We will take care of our clients, no matter what.

So, what are these programs? Very simply, they are programs that allow you to buy a house and remodel it with the same mortgage. Both of these programs can also be used for refinancing. For readability’s sake, I’m just going to use 203(k) to refer to both unless otherwise indicated. The basics of these loans are that you find a house to buy, or refinance a house you own, and you include the money to renovate it in the loan. As 203(k) Consultants, we are there to guide you through the entire process. We start off once you find your new home, and we do an inspection of the home to determine what needs to be done to get it up to minimum standards. After that, we ask you what you want to do to upgrade the home. We then provide you with a detailed Specification-of-Repairs (also called a Work Write-up), that lists everything that needs to be done, along with the estimated cost. You then send this list (without the prices) to a few contractors to get bids. After selecting your contractor, we finalize the Specification-of-Repairs, and your loan is processed. The appraiser needs this document so they can determine the After Repaired Value (ARV) of the home. For 203(k) loans, you can borrow up to 110% of the ARV, and HomeStyle allows 95% of the ARV.

After the loan closes, we stay with you through the renovation process. We process all of the draw requests to ensure that the work was actually done, and done correctly, before the contractor is paid. We also handle any change order requests along the way.

So, what can you do with one of these loans? You can do almost anything, except build a new house with these loans. For a full breakdown of what’s allowed, visit http://vhillc.com/203k-consultant/ Also, the pictures on the page are before and after shots of our house in Maryland.

If you are interested in one of these loans, let us know. We’ve done a lot of these projects, and have been in your shoes as well. There’s not many questions about these loans that we can’t answer. We look forward to working with you to make a house you like into a home you love. For 203(k) Consultant services, we cover a much larger area than it shows, including up to 150 miles from Bandera, TX. If you’re wondering if we’ll go to your area, give us a call.