what is an FHA approved contractor? and how do you find some in your local area?

Asked by Kri427, 75034 Sat May 29, 2010

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11
Dana Lindberg’s answer
Dana Lindberg, Both Buyer And Seller, Phoenix, AZ
Sun Sep 8, 2013
There is no such thing as an FHA-approved contractor/handyman. The borrowers can select whomever they would like to perform the work, so long as they are experienced and insured. The most important thing to consider is choosing an experienced FHA 203k Lender. Check out http://www.cfs203k.com for more details.
1 vote
Zeolilly, Home Buyer, Fort Worth, TX
Wed Jul 22, 2015
The selection of an experienced 203k contractor is one of the most important decisions a borrower can make during the FHA 203k loan process. Partnering with the right 203k contractor can make all the difference to a successful 203(k) experience. There are a number of things you need to consider before selecting a 203k contractor.

Visit Here: http://fhamortgageinfo.com/
2 votes
James Suhr, Agent, Arlington, TX
Sat Nov 9, 2013
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8173601646

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0 votes
Paul Welden, Other Pro, Tempe, AZ
Wed Mar 13, 2013
Tomas.Solis,

There is no FHA certification for residential builders/remodelers/contractors. HUD/FHA discontinued that in 1995.

There is, however, an education-based program where contractor can earn the designation as a Certified 203k Contractor. More information is online at http://203kContractors.com.
Web Reference:  http://203kContractors.com
0 votes
tomas.solis, Home Owner, Frisco, TX
Wed Mar 13, 2013
Iam a recent Builder, i like to know how can i do to take a FHA Certification?
0 votes
Tomas Solis,

There is no FHA Certification for residential builders/contractors/remodelers.
There is, however, an education-based program where contractors can earn the designation as a Certified 203k Contractor.

More info is online at http://203kContractors.com
Flag Wed Mar 13, 2013
Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Wed Jan 23, 2013
This is an incorrect statement 203kContractors.com,

>>An FHA approved contractor is actually a DE lender (Direct Endorsement FHA Lender). You can find these DE lenders by going to hud.gov.

A DE Lender is a "direct lender" of FHA loans, not a contractor.

The following statement is marginally correct...

>>But since lenders do not have an education system for contractors for the 203k and most do not have sufficient infrastructure to properly "approve" contractors for the 203k loan, lenders can direct these contractors to

Lenders DO have the infrastructure to "approve" a contractor or they wouldn't be doing 203k or for that matter, any rehab or construction lending, what they lack or do not provide as part of the lending process is free training outside of any instruction that may come by default from the Loan Officer. Obviously that's an opportunity for any entrepenuers out there to fill the education gap but your statement as you wrote it is misleading.
Web Reference:  http://RobWeber.com
0 votes
Einiedog, Home Buyer, Frisco, TX
Fri Dec 7, 2012
My neighbor recently purchased a home through FHA. At the time of closing the contractor was to provide a 10-year construction warranty on the home. The closing went as scheduled based on the contractor showing up at closing with a commitment for the 10-year construction warranty. However, the contractor never followed through with obtaining the warranty and I believe there is deception and need to know how this deception can be remedied. The home is newly built and there are problems which the contractor surely is responsible to remedy. How can my neighbor get the ball running to have the contractor show the mandated contract and also having the home problems remedied.
0 votes
You should probably create a new question to get this answered, only people who're answering/reading the original question will come to this thread. It sounds like the contractor is in breach and a Real Estate attorney should be consulted. Best of luck to your neighbor!
Flag Wed Jan 23, 2013
Bill Grange, Home Buyer, 91303
Sun Mar 4, 2012
The 203k loan, there is no such thing as an FHA approved contractor because HUD/FHA does not approve, endorse, educate or certify construction contractors for the 203k loan. Instead, the borrower is allowed to hire any contractor they want for the 203k loan but it is the responsibility of the lender making the loan to "approve" the contractor.
0 votes
This is an incorrect statement, Bill Grange is correct., see my post I did. Considering I'm a Direct Endorsement lender, I can tell you with 100% certainty your statement is incorrect.
Flag Wed Jan 23, 2013
Bill,
Actually an FHA approved contractor is a DE lender (Direct Endorsement FHA Lender). You can find these DE lenders by going to hud.gov.
Now, there is no such thing as a residential building/remodeling contractor being FHA approved, but these contractors can become Certified 203k Contractors. (See answer below)
Flag Fri Dec 7, 2012
Paul Welden, Other Pro, Tempe, AZ
Sun Oct 31, 2010
An FHA approved contractor is actually a DE lender (Direct Endorsement FHA Lender). You can find these DE lenders by going to hud.gov.

However, most people think that contractors who build, remodel and renovate properties can be FHA approved. However, HUD/FHA does not approve, endorse, educate or certify construction contractors. Builders can become HUD approved to construct residential properties for HUD.

However, if you are referring to the 203k loan, there is no such thing as an FHA approved contractor because HUD/FHA does not approve, endorse, educate or certify construction contractors for the 203k loan. Instead, the borrower is allowed to hire any contractor they want for the 203k loan but it is the responsibility of the lender making the loan to "approve" the contractor by verifying the contractor's credentials, work experience, licensing information, type of work performed, experience, and client references. But since lenders do not have an education system for contractors for the 203k and most do not have sufficient infrastructure to properly "approve" contractors for the 203k loan, lenders can direct these contractors to http://203kContractors.com to become educated on the 203k. These Certified 203k Contractors will enable the lender to be in compliance with HUD's Mortgagee Letters 98-11 and 00-25.

-----
203kContractors.com®
203k Contractor Directory for the FHA 203(k) Loan
(480) 463-4663
Web Reference:  http://203kContractors.com
0 votes
Robert Spring, Mortgage Broker Or Lender, McKinney, TX
Tue Jun 1, 2010
I'd like to make sure I'm clear on what your asking. It seems to me you want to make sure a contractor is approved by FHA to do work on the home you are purchasing or refinancing? Correct?

If so you would probably be looking into a FHA 203K or FHA 203K Streamline loan for your new purchase or refinance. Correct?

These types of loans allow for renovation work/costs to be rolled into the new mortgage. The FHA approval process is fairly simple. The contractor completes a couple of forms and submits a couple of references, then the lender's underwriter verifies the information and references. They would not be approved if they were on an FHA black list (Limited Denial Particiapation List, search able here: https://www5.hud.gov/ecpcis/main/ECPCIS_List.jsp)

If you are not looking for one of the FHA rehab loans, please let us know what you are working towards and we'll try and help.

Good luck!

ROB SPRING, MBA
rob-spring@live.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat May 29, 2010
It depends in what field you need a contractor, in most cases if you are getting a fha 203k loan and you need someone to finish the work within fha guidelines.

I would start with your agent, they will have contacts and referral of contractors they used before and would have had great success with or not so much and can tell you who not to use.

I hope this helps
Web Reference:  http://www.ScottSellsNH.com
0 votes
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