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Discussion Starter · #1 · (Edited)
Does anyone have any experience with 203k rehab loans?



I am helping my sister through the home buying process and the house she wants needs some work and qualifies for a 203k streamlined rehab loan due to it being a HUD home.

We had a contractor come and give an estimate which when we received it was very basic, not stating any details on the products that would be used like windows and doorwall and warranty details. Basically it was not itemized at all, just very basic.

We have no idea what hot water heater he will be using when the plumbing is redone.

When asked for an itemized estimate he separated each cost down to material and labor only and again we don't know what products he will be using, contractor specials or some decent quality products that we can count on lasting a reasonable time.

He was very brief when he did the inspection for the estimate and his estimate seems quite lacking in details. His quote for furnace and AC replacement was almost double what I was quoted from a contractor friend of mine.


I asked the question to the loan officer "Can we subcontract the work out ourselves" and was told no a 203 rehab contractor needs to do it and there can only be 2 draws of the money set aside for the repairs.


We have googled his company and there are a couple bad hits on their facebook page. I do want to look into his company more and check it against the BBB but am not familiar with the process.

My feeling is to not use this guy but am not coming up with other options for 203 rehab contractors and this one was recommended by the loan officer.


EDIT: we do have another lead for a subcontractor and will be contacting him tomorrow.
 

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Discussion Starter · #3 ·
Definitely check out another guy, I had bad feels about a guy I was using 2 years ago due to lack of choices at the time. He fucked me in the end.
And that is what we are trying to avoid.

I have not come up with any other options for a 203k contractor on my own, my other sister did give a lead and we are pursuing that and hoping for better results.
 

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Discussion Starter · #5 ·
My understanding was any contractor licensed to do the work could, is this not the case?
We are meeting a second contractor on Tuesday and hoping it goes better than the first guy. Also fired the loan officer as he was not doing his job.

The thing with 203k loans is that there is a lot of paperwork involved and so far it seems difficult to find contractor that are willing to deal with it or are not qualified.

Right now I am thankful we found an alternate but we will find out if he is any better, being optimistic at this time.
 
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