203(k) Loan Roles and Responsibility Chart

There are many players on the 203(k) Team. Browse the chart below and see what task each member is responsible for. Note that the two main team members (ones with the most responsibility) are the Lender and the Client (they have the most X marks in each type loan).

Also note that the Consultant’s role is completely missing on the Streamlined K. FHA altered the program guidelines with Mortgagee Letter 05-50 and raised the minimum loan threshold from $15,000 in 2005 to the current level of $35,000. That means your repair costs (combined with lender charges) must be at least 35K before you’ll work with an Approved Consultant. That dollar value threshold is also dependent on whether your repair items (and the condition of the home as reported by the Appraiser or the Consultant) should include structural repairs. An example of a structural repair would be moving load bearing walls, house leveling or adding a room or floor level to your planned rehab.

TIP :: Always have your home inspected by a professional home inspector and for the greatest bang for your buck, hire a home inspector who is also listed as an Approved 203(k) Consultant. Find a qualified Consultant and other Professionals on this MAP.

It’s noteworthy to mention that other than the lender, you, the client, carries the most responsibility. Rightly so. After all, the rehab or remodel job involves your home and your money. You should and you will be included (if not directly, certainly indirectly) on almost all the rehab decisions.

Find a link to ALL MORTGAGEE LETTERS that pertain to the 203K Loan.

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