Beryl’s Streamlined 203k Inspector provides you a detailed Performance Specifications and Scope of Work package that informs the Contractors what needs to be done to the property and asks them to price their services out by Labor and Materials. Below is an approved list of repairs / improvements from HUD:
- Roofs, gutters and downspouts
- HVAC systems (heating, venting and air conditioning)
- Plumbing and electrical
- Minor kitchen and bath remodels
- Flooring: carpet, tile, wood, etc
- Interior and exterior painting
- New windows and doors
- Weather stripping & insulation
- Improvements for persons with disabilities
- Energy efficient improvements
- Stabilizing or removing lead-based paint
- Decks, patios, porches
- Basement completion and waterproofing
- Septic or well systems
- Purchase of new kitchen appliances or washer / dryer
You select the Contractor
While Beryl’s Streamlined 203k Inspectors have contacts with several vetted Contractors available for you, you ultimately select the contractor. Beryl’s Limited 203k Inspector is willing to assist you in reviewing the bids submitted by renovation contractors.
If you’re considering a contractor which has not yet been approved by your lender or has never done a Streamlined 203k rehabilitation, it is important that they are informed early on about the Streamlined 203k rehabilitation concept as it applies to contractors.
Disbursement of Payments for a Streamlined 203k Loan
There is a maximum of two payments to each contractor or “self-help” plan. The first Limited 203k payment is 50% in advance. However, a self-help” allowances does not include labor, only materials costs. The final Streamlined 203k payment is paid after submission of evidence of payment to sub-contractors / suppliers or other possible lien claimants.
Don’t Go with a Free Estimate from a Contractor
Quite often, one may consider just calling up a contractor and getting a free estimate regarding the repair work. This may be a reasonable option if the contractor is known to be trustworthy and has worked with you in the past. If that doesn’t happen to be case, do not opt for this. You will usually get what you pay for and since you are getting it for free, it may not be worth all that much.
As the contractors are motivated to earn your business, they may initially present a proposal with a lower cost estimate than the real amount necessary to finish the work. The real cost and addition repair work may be revealed to you after you have already come to an agreement and the contractor has already begun work.
Then you will have to come up with money out of your own pocket instead of utilizing the Streamlined 203k loan. This kind of behavior is widely prevalent and the only way to avoid falling into this common trap is to seek an independent and honest feasibility analysis report from a Beryl Streamlined 203k Inspector.