How To Become An
Approved 203(k) Consultant

Did You Know? YOU CAN SUBSCRIBE to the Single Family Housing email list. You will get frequent updates to the HOC Reference Guide, training and events, 203k info, announcements, mortgagee letters and notices about your Single Family business. Related Information 203k Consultant Roster Streamline K Mortgage

Application Process

To apply for placement on the FHA 203(k) Consultant Roster, an applicant must submit the information listed below to the HOC in the area in which he/she will be conducting business. Please see HUD Mortgagee Letter 2000-25 for more information.

The application information should be submitted in the following format. A list or resume documenting:

	A minimum of three years experience as a remodeling contractor, general contractor or home inspector. A state license as a state certified engineer or architect may be submitted in lieu of the documentation of the three years experience;
	Education;
	Licensing (general contractor, home inspector, etc.). In those states where a Home Inspector is required to be licensed, the Department requires the applicant to be licensed and to provide proof of that licensing;
	A narrative description of the current/prospective consultant's ability to perform home inspections, prepare architectural drawings, use proper methods of cost estimating and complete draw inspections; and,
	The applicant must also submit a certification verifying that the consultant has read and fully understands the requirements of HUD Handbook 4240.4, REV 2 (203(k) Handbook) and all related materials listed in Mortgagee Letter 2000-25.

Future Program Enhancement

To further evaluate the 203(k) consultant's program knowledge, the Department will soon develop a formal examination process similar to the test FHA appraisers must now complete. The Department will issue additional guidance about this examination in the near future.

Incomplete Application Packages

An individual who submits an incomplete application package (defined above in the section entitled "application process") will receive a letter indicating the information required to cure the deficiency. This letter will give the individual 15 days to correct any deficiencies. If the response does not satisfy the outstanding requirement in its entirety and within the prescribed deadline, the individual must wait an additional 90 days prior to re-applying.

Application Approval or Denial

FHA will approve or deny the consultant's application to be listed on the FHA 203(k) Consultant Roster, based upon the information submitted. Inclusion of a consultant on the list means only that the consultant has met the qualifications prescribed by FHA for placement on the Roster; it does not create or imply a warranty or endorsement by FHA of the consultant, nor does it represent a warranty of any work performed by the consultant. If a consultant already on the Roster is found to not be in compliance with requirements of the 203(k) program, the consultant may be removed from the roster.

Participation Letters and Consultant Identification Numbers

Each applicant who meets the 203(k) program requirements will be issued a participation letter. This letter will contain the consultant's name, business address and a consultant identification number. This number will be needed by the consultant prior to doing any work associated with any 203(k) loan. This consultant identification number will be used to assist the Department in evaluating the work of consultants. Mortgagees must enter the consultant's identification number on the insurance application screen and will not be able to process 203(k) cases without it.

Each consultant will be provided with only one participation letter. After the letter is mailed, mortgagees, consultants and others can verify that the consultant has been placed on HUD's 203(k) consultant roster.