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FHA203k Process & Consultant Fee Schedule

 

STEP 1- AN INITIAL (MPS)  “MINIMUM PROPERTY STANDARD” INSPECTION BY AN FHA CONSULTANT MUST BE ORDERED TO DETERMINE IF THE PROPERTY QUALIFIES FOR FHA203K FINANCING. ($300 VALUE) 

STEP 2 – A FEASIBILITY EVALUATION REPORT WILL NEED TO BE COMPLETED WHICH IDENTIFIES THOSE ITEMS THAT FHA MAY REQUIRE TO BE REPAIRED OR REPLACED FROM THE MPS INSPECTION REPORT, TOGETHER WITH ITEMS RECOMMENDED TO BE REPAIRED OR REPLACE BY THE CONSULTANT AND THE DESIRED IMPROVEMENTS BY THE CLIENT. ALL THREE ITEMS ARE COMBINED TO DETERMINE IF THE PROJECT IS FEASIBLE. ($100 VALUE)  THE TOTAL INITIAL FEE OF $400 INCLUDES THE MPS INSPECTION AND THE FEASIBILITY EVALUATION REPORT.

STEP 3- THE WORK WRITE UP IS THE FINAL PROJECT ANALYSIS.  FEES  RANGE FROM $400 TO $1000 SET BY FHA AND ARE STANDARD WITH ALL PROJECTS AND FHA CONSULTANTS REGARDLESS OF THE COMPANY THAT YOU SELECT.  THESE FEES ARE PAID (OUT OF POCKET) BY THE CLIENT.   (SEE CHART BELOW)  

AN INITIAL FEE OF $400 IS DUE AT TIME OF THE INITIAL INSPECTION WHICH COVERS THE COSTS OF THE MPS INSPECTION & FEASIBILITY EVALUATION.      THE INITIAL FEE IS NON-REFUNDABLE,  HOWEVER $300 OF THE FEE IS CREDITED TOWARD THE  TOTAL WRITE UP FEE FROM THE BELOW CHART.  ONCE IT IS DETERMINED THAT THE PROJECT IS FEASIBLE, THE REMAINING BALANCE WILL BE DUE AND PAYABLE FROM THE CLIENT. (OUT OF POCKET) WHICH IS ALSO NON-REFUNDABLE IN THE EVENT THE PROJECT IS CANCELLED OR DOES NOT MOVE FORWARD.

 

OTHER INSPECTIONS & COSTS:

In some cases,  additional inspections may be required by the LENDER.

  • FHA normally requires a Termite  or WDO Inspection which is recommended to be purchased upfront, however can be purchased after the initial MPS inspection independently, but must be completed prior to the Final Write Up.
  •  A termite Inspection can be ordered from any Termite/Pest control company of your choice or can be ordered upfront through AmeriHome Advisors, LLC via MI pest control for a reduced fee of $100.   
  • If the subject property is on a septic system, a septic inspection may be required by the Lender. Further research required. Amerihome Advisors, LLC does not perform septic inspections, so an independent inspection may be required prior to the final write up.
  • An FHA Consultant in many cases are NOT licensed Home Inspectors and therefor are mostly familiar with FHA standard requirements.  AmeriHome Advisors, LLC is a  licensed Home Inspection company in addition to being a certified FHA203k Consultant company.  If the condition of the property is questionable, a full home inspection may be required or desired, prior to moving forward with the FINAL WRITE UP. Amerihome Advisors, LLC offers a discounted price of $175 for a full home inspection on ant size house, condo or townhome when combined with the MPS inspection. Mold and Air Quality sampling may be desired with some properties.  See our complete line of available Add-On inspection services posted on this website.

ONCE IT IS DEEMED BY THE LENDER THAT THE PROJECT IS FEASIBLE AND CAN BE FUNDED, A CONTRACTOR  IS LOCATED AND THE FINAL WRITE UP IS COMPLETED, THEN SUBMITTED TO TO APPRAISER.

AFTER ALL APPROVALS, CLOSING OCCURS AND THE PROJECT IS SCHEDULED.   DURING THE TIME SPAN OF THE PROJECT, PERIODIC REQUIRED DRAW INSPECTIONS ARE PROVIDED FOR A  $250 FEE EACH WITH A MAXIMUM OF 5 INSPECTIONS DURING THE PROJECT AND INCLUDES THE FINAL INSPECTION.  A DRAW INSPECTION IS REQUIRED EVERY 30 DAYS AT A MINIMUM. THESE INSPECTIONS FEES ARE PAID  BY THE LENDER FROM THE ESCROW ACCOUNT AFTER EACH DRAW

If after reviewing the MPS Inspection Report and the feasibility study, and in the event that the project is deemed to be Non- Feasible, then NO additional fees are due. If it is deemed to be feasible and you want to move forward,  then the “Work Write Up fee” will be due and payable as shown below in the chart.

 

                      IMPROVEMENTS          Work Write Up                 MPS Credit      Balance

$5000-$7500

$400

 

$-300

$100

$7501-$15,000

$500

 

$-300

$200

$15,001 – $30,000

$600

 

$-300

$300

$30.001 – $45,000

$700

 

$-300

$400

$45,001 – $60,000

$800

 

$-300

$500

$60,001 – $75,000

$900

 

  $-300

$600

$75,001 -$100,000

$1000

 

$-300

$700
         

SUMMARY:

Step 1- Feasibility Study ($100) & Limited MPS Inspection ($300)= $ 400.00  (MINIMUM NEEDED TO GET STARTED)   Non -refundable, however $300  is credited against the Work Write up fee set by FHA.  See chart above.

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Step-2 (Optional) Full Home Inspection added to the MPS inspection – $175 for a full inspection plus the required termite inspection can be added at $100 (Total) $275    ($400 Initial + $275 Full Inspection + Termite)

_____________________________________________________________________________________________________________________________SStep-3 Work Write Up – Due after you decide to move forward and prior to ordering an Appraisal-

Example of Costs: The Average investment costs for a project between $30.001 and $45,000   with NO additional add-on inspections is $800 paid out of pocket and draw inspection fees of $250 per inspection. ($1250 or less) paid from Escrow account by the lender.    Additional Add-On inspections will increase this estimate. This does not include architectural exhibits, (if required) and other Loan , Origination Fees and closing costs.