Oakland County

Home Inspections

(313) 338-9840

​​Serving Oakland County:
Addison Auburn Hills Berkley Beverly Hills Bingham Farms Birmingham Bloomfield Bloomfield Hills Brandon Clarkston Clawson Commerce Farmington Farmington Hills Fenton Ferndale Franklin Village Groveland Hazel Park Highland Holly Huntington Woods Independence Keego Harbor Lake Angelus Lake Orion Lathrup Village Leonard Lyon Township Madison Heights Milford Northville Novi Oak Park Oakland Orchard Lake Ortonville Oxford Pleasant Ridge Pontiac Rochester Rochester Hills Rose Township Royal Oak South Lyon Southfield Springfield Sylvan Lake Troy Walled Lake Waterford West Bloomfield White Lake Wixom Wolverine Lake
48009 48017 48025 48030 48034 48067 48069 48070 48071 48072 48073 48075 48076 48083 48084 48098 48165 48178 48220 48237 48301 48302 48304 48306 48307 48309 48320 48322 48323 48324 48326 48327 48328 48329 48331 48334 48335 48336 48340 48341 48342 48346 48348 48350 48356 48357 48359 48360 48362 48363 48367 48370 48371 48374 48375 48377 48380 48381 48382 48383 48386 48390 48393 48442 48462

203K Consultation(Inspection)

What is a 203(K) Loan?


A 203(k) loan program is essentially a rehab mortgage that gives a buyer the opportunity to purchase a home in need of repairs through a single loan. Previously, many buyers who were interested in these types of properties had to secure a standard mortgage and then obtain additional separate financing to cover the costs of the upgrades.  

The Federal Housing Authority (FHA) insures these loans, which gives a buyer a great opportunity to obtain unrequired upgrades (i.e. remodeling their kitchen), as long as the home meets the minimum property standards set by the Housing and Urban Development (HUD). 


Most 203(K) consultants are licensed home inspectors, general contractors, and sometimes architects. (Licensing requirements vary by state.)  They must submit various documents that prove their expertise to HUD – the Department of Housing and Urban Development. The requirements are fairly rigorous, and only HUD-approved consultants are listed on the official FHA 203K Consultant Roster. 

We are an Approved 203(K) Consultant. Our Active Status can be viewed HERE.


203K Consultation Vs Standard Home Inspections


     When performing a Standard Home Inspection the inspector is working directly for the buyer to evaluate the entire home and all its systems. During the evaluation they are safe, functional or near the end of life and make recommendations accordingly. The main goal is to gain insight into the full condition of the home allowing the buyer to view items in need of immediate attention and monitor those that will need replacement or repairs in the future.

     During a 203(K) "inspection" it is the inspectors job to evaluate the home and its systems to identify safety and structural issues to be repaired/replaced following HUD Minimum Property Standards. During this time they will also review the estimates from contractors to determine if the upgrades are reasonable appropriate and necessary. 

While there may be similarities in both these inspections are not interchangeable and its recommended that those anticipating a 203K loan still complete a standard home inspection. ​​


What does the 203K Consultant do?


    If you decide to buy a home and it needs some updates, repairs or renovations, a 203(k) consultant would inspect the property and talk with you about both the repairs that will be required to meet HUD’s Minimum Property Standards and the optional renovations you would like to make beyond the required items. The consultant then prepares paperwork that the lender uses to determine the loan amount and underwrite the loan. This paperwork typically includes the feasibility report, architectural plans, and a work write-up that reflects specifications on all of the repairs that will be done, including:

    Cost of materials and cost of labor for each repair,

    A recommended “contingency funds” amount to be set aside in case there are cost overruns,

    A recommended inspection schedule, showing the times during construction when the Consultant will inspect the work performed and completed


If the lender needs additional paperwork – for example, a termite inspection report or certification that a roof is structurally sound – the consultant and lender work together to coordinate ordering these reports and making any needed changes or adjustments to various documents, if additional repairs are needed.


​A 203(K) consultant also performs valuable services after the loan closes and repairs begin. When your 203(k) loan closes, a Repair Escrow Account is set up. The consultant inspects repairs as they are completed and, provided the work is satisfactory, tells the lender that funds can be released from the Escrow Account to pay the contractor. On major projects, this inspection and drawing of funds from escrow to pay for completed work will typically happen as often as five times, before the final inspection and final payment. A 203K consultant can help you throughout your home renovation project, providing valuable insight and support when you are working with a general contractor. Again, it’s important to choose a Consultant who is a good match for you.

Let's Talk Fees


    One final thing: consultant fees. Ask your mortgage loan originator whether the 203(k) consultant’s fees can be rolled into your 203(k) loan. The fees consultants can charge are uniform amounts that are set by HUD, and fees are based on the total dollar amount of the repairs that are made. Typically, you will pay for an initial feasibility study, if needed, out of your own pocket, and the lender may allow you to finance any additional fee amounts.


Home Inspection VS (203(K) Consultation     

When performing a Standard Home Inspection the inspector is working directly for the buyer to evaluate the entire home and all its systems. During the evaluation they are safe, functional or near the end of life and make recommendations accordingly. The main goal is to gain insight into the full condition of the home allowing the buyer to view items in need of immediate attention and monitor those that will need replacement or repairs in the future.

     During a 203(K) "inspection" it is the inspectors job to evaluate the home and its systems to identify safety and structural issues to be repaired/replaced following the standards set in place by HUD. During this time they will also review the estimates from contractors to determine if the upgrades are reasonable appropriate and necessary. 

While there may be similarities in both these inspections are not interchangeable and its recommended that those anticipating a 203K loan still complete a standard home inspection. ​​

http://www.my-ochi.com/2019-08-13T18:43:27+00:001.00http://www.my-ochi.com/services.html2019-08-13T18:43:27+00:000.80http://www.my-ochi.com/sewer-inspections.html2019-08-13T18:43:27+00:000.80http://www.my-ochi.com/home.html2019-08-13T18:43:27+00:000.80http://www.my-ochi.com/contact-us.html2019-08-13T18:43:27+00:000.80