McDonnell Group Practical Guide to Renovation Loans 4.13.18 - Flipbook - Page 9
QUESTIONS? WE'VE GOT ANSWERS!
How do we develop the
budget and get it
approved?
What information does
my contractor need to
provide to be approved
to complete the
renovation project?
Can we do some of the
work on the property
ourselves to save money?
Who is a HUD Consultant
and why do I need one?
The first step is meet onsite at the property with the HUD
Consultant and the General Contractor (if possible) to walk through
the home and discuss required and optional repairs. When
completed, the HUD Consultant will prepare a written summary
called a work write-up which will be used to compare with the bid
provided by the Contractor. The figures on the bid will need to
match the work write-up prior to ordering the appraisal. Once the
figures match and forms have been signed by all parties, the
documents are submitted with the appraisal request for the
appraiser's review.
The Lender will send a customized "welcome packet" to the
Contractor as soon as one has been selected. Requested
information includes (but not limited to):
• Contractor references and list of recent projects completed
• List of sub-contractors to be used
• Copy of General Contractors license, insurance and bond
• Copy of lead abatement license (if lead-based paint is
present)
No. Lenders do not allow "self-help" for improvements. Only a
licensed General Contractor may facilitate the repairs.
A HUD Consultant is a General Contractor by trade, but works for
the Department of Housing and Urban Development (HUD). Lenders
require a HUD Consultant to help oversee the entire process,
ensuring the contractor provides a fair estimate upfront and inspects
the Contractors work during the project, notifying the Lender when
the next repair draw is OK to be issued.
To learn more, call us at 714.559.3696 or visit us
online at www.financemyimprovements.com
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