The consultant is not approving the contractor but the consultant is approving the work that is going to be done.
I hope that helped and under the post section on the right side of...http://www.203kmortgagelender.com/blog
More info. regarding that can be found.
On the streamline FHA 203k up to $35k in repair or rehab no 203k consultant is necessary just optional.
On the full FHA 203k over $35k in repairs, rehab or remodel it is mandatory to have a 203k consultant but the consultant has nothing to do with approving the contractor.
The lender does not have an approval list for contractors so the buyer can pick anyone they want as long as they are licensed, bonded and in good standings which can be checked on the contractor state license board website for your particular state.
As far as doing the work yourself, it is very limited on what the lender will allow the buyer to do.
Also, the lender does not choose the 203k Consultant it is the buyer's choice as well. The buyer can pick out anyone they want that is an approved 203k Consultant which can be found on the HUD website.
Their role is more of a gate keeper to make sure the cost and timelines can be met.
Any further questions or information needed go to the "BLOG" at: http://www.203kmortgagelender.com
In othjer words the plumber need to have an opperational system when they leave and can not charge $00.10 more for the work than their contract no matter what they run into. Thay may however charge less.
Sale price and repairs can go over the appraised value by 10% and the contractor does not need to be approved just needs to be up to date on licensing and in good standings.
Visit this site to get all your FHA 203k questions answered.
The house must appraise for what the house will be when you add in the repairs on top of the purchase price. In other words if the purchase price plus the amount of repairs when finished over prices the house for the market, then the loan will not be approved.
The money for the repairs needs to be approved as does the contractor by a 203K adviser assigned to the loan.