Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Since this funding does not disburse funds until part of the work is complete, how does one go about finding a contractor to take the job? It seems like GCs would be reluctant without funds up front.
Since this funding does not disburse funds until part of the work is complete, how does one go about finding a contractor to take the job? It seems like GCs would be reluctant without funds up front.
Since this funding does not disburse funds until part of the work is complete, how does one go about finding a contractor to take the job? It seems like GCs would be reluctant without funds up front.
There are contractors that will take on the work based on the disbursement terms of the loan. Most will want a good faith deposit of 5-10% to cover their bond and base materials. You may want to double check your loan as there should be some kind of stipulation for deposits being disbursed to the contractor once a contract is signed.
Since this funding does not disburse funds until part of the work is complete, how does one go about finding a contractor to take the job? It seems like GCs would be reluctant without funds up front.
Since this funding does not disburse funds until part of the work is complete, how does one go about finding a contractor to take the job? It seems like GCs would be reluctant without funds up front.
You get two disbursements with the FHA rehab loan. There is an upfront one for the materials. Then the final disbursement is at the end after the appraiser has verified completion of the work. So you need to find a GC that has cash to carry the project as they will be paying out subs from their own pocket until they get reimbursed at the end.
I know here locally only a couple of them will take on FHA rehab's because of the paperwork and payment system.
Yep- certified 203k contractors!
They're familiar with the program and work within the guidelines. Just be sure you're on the same page as the contractor. Some fall into that "streamline" work, while others fall into the "full" category.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.