Matt, Home Owner in Chicago, IL

I want to rehab my house using fannie maes home style loan. Are their certain contractors that I have to use or can I use any contractor that is?

Asked by Matt, Chicago, IL Mon Feb 10, 2014

licensed? Is there a list of approved contractors I must use?

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11
I think the loans are the easy part..the permits from the city are where the problem begin
1 vote Thank Flag Link Tue Feb 11, 2014
In most cases You can use a contractor if your choice as long as they are licensed and insured in the state that property is located. But you should check with your lender to see if they have any additional requirements.
If you do not have a lender yet I would be happy to help
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
1 vote Thank Flag Link Mon Feb 10, 2014
Hi, I'm trying to get one of these going myself. I'm also looking for a good GC.

The lender, Guaranteed Rate, had me ask the Consultant on the project. I believe every project will have an approved Consultant that writes up, inspects and approves the work.

I wanted to use a contractor that I had been working with, and even though he didn't work out, he just needed to provide the paperwork required with his basic business information. I think in end the contractor has to have the funds to do the work and be paid after the Consultant approves the work for the draw. I'm new to this, but I think that's right.

Good luck!
0 votes Thank Flag Link Fri Dec 5, 2014
please contact you lender directly as it's easy to start right and very tough to turn around and fix
0 votes Thank Flag Link Tue Feb 11, 2014
hi Matt! I do this kind of lending everyday! The most important thing to remember is that the contractor will be paid for the work after the work is done. Some contractors want money up front. But there are many contractors who will go along with this type of financing and restrictions. The contractor is up to you to decide upon.need more help? Just give me a call 847 989 9929. Or email Leslie.Abbey@firstmerit.com
0 votes Thank Flag Link Mon Feb 10, 2014
I used this loan to do an addition on my own home. I used my own contractor, he just had to provide a copy of his license and proof of insurance. It was really pretty simple. I've had clients use the FHA 203K loan and this was easier.
0 votes Thank Flag Link Mon Feb 10, 2014
Hi Matt, I reached out to the lender that I use for Fannie Mae programs to see what I could find out for you. The HomeStyle Loan is similar to the 203K for owners like you who already own their home. The lender I work with has been approved for this type of loan but still finding out more about the rules...assuming that they are similar to the 203K Fannie Mae loan, the contractor does not have to be chosen by Fannie Mae but will have to meet certain requirements, mainly that they are licensed and bonded in the state of the property.
If you'd like more information or the contact info for a lender that can help you through the process, please feel free to email me. snice@dreamtown.com
Web Reference: http://www.susannice.com
0 votes Thank Flag Link Mon Feb 10, 2014
Matt,

To make the process go smoothly work contractors approved by Fannie Mea. Your lender should have a list.
0 votes Thank Flag Link Mon Feb 10, 2014
Your lender will be able to guide you in obtaining the 203k loan and as per contractors they must be licensed and bonded.
0 votes Thank Flag Link Mon Feb 10, 2014
You can use your contractor of choice but they have to be licensed and bonded. It is always best to use a general contractor that has experience with these types of loans. There are a lot of requirements and without the right professional; it may take longer.
If you need a referral for an excellent lender or GC please feel free to contact me at exit.catherine@gmail.com.
0 votes Thank Flag Link Mon Feb 10, 2014
Sounds like a 203K loan and if so then yes there are certain contractors on the approved contractor list they allow you to use. You can't just use anyone. There are a lot of rules with this loan so be sure you deal with a lender that is approved for 203K and knows the rules.
0 votes Thank Flag Link Mon Feb 10, 2014
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