203k Consultants - Business Background

203k consultants derive their name from Rehabilitation Mortgage Insurance, section 203k of the National Housing Act under which FHA mortgages are insured. Section 203k enables home buyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The mortgage is funded by a lender and insured by HUD/FHA.

Part of the 203k insurance endorsement process requires the borrower to provide architectural exhibits to the lender who, in turn, submits the paperwork to HUD/FHA. To streamline the process for borrowers and lenders, 203k consultants assist the borrower and lender by preparing exhibits and providing other assistance. 203k consultants are trained by HUD/FHA on 203k requirements and procedures. Consultants who have been certified (approved) by HUD/FHA are placed on the 203k Consultant Roster. The 203k consultant must be recertified every two years.

203k Consultants on the FHA Connection is used to locate a consultant on the 203k Consultant Roster who is approved to do business in a particular state. Authorized lenders can view a version of the roster that includes consultant status and eligibility information. Authorized HUD Homeownership Center (HOC) staff maintain the 203k Consultant Roster and can add and update 203k consultant information. In addition, an entire list of 203k consultants can be downloaded as a Microsoft® Excel® file.

203k Consultants can be accessed through the following sequence of FHA Connection links: Single Family FHA, Single Family Origination, FHA Approval Lists, and 203k Consultants.

Note: The 203k Consultant Roster is also available to borrowers interested in hiring a 203k consultant. This public information is available at: https://entp.hud.gov/idapp/html/f17cnsltdata.cfm.

203k Consultants - Business Background

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