Contractor for Renovation & Addition - 203k financed? (recommendation, appraiser, housing)

[1st_home]

Any recommendations? Job is on South Shore and need GC that has worked with 203k or Mass Housing lender before. Thank you.

[1st_home]

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.

[1st_home]

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.

[steven_h]

Originally Posted by 1st_home

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.

I was a contractor for 30 years.

[Flamingo13]

Not even nearly enough info.

[Diana Holbrook]

And I think the loan terms can accommodate an early first payment for materials. Talk to your lender. They do have some flexibility.

And try to go with a contractor who has done 203 K work before. It's a little different in the details is all.

[MrRational]

Originally Posted by 1st_home

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?

Certified 203k Contractors
https://www.contractorconnection.com...operty-Owners/

[MrRational]

Originally Posted by 1st_home

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.

How many threads do you have on this topic?

[Silverfall]

Originally Posted by 1st_home

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.

[K'ledgeBldr]

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.