203K and Homestyle renovation Specialists

JBE Consulting​​

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​​Project planning & consulting services for all types of renovation mortgage loans.​
203K and Homestyle loan consulting.
Serving Norfolk, Portsmouth,  Virginia Beach, Chesapeake, Suffolk. Smithfield, Franklin, Hampton, Newport News, Williamsburg, Gloucester, Mathews, Northeast N. C. and beyond.​​
 Certified HUD 203K consultant 
Scroll down for Frequently Asked Questions
1.  What is a 203K, Homestyle or conventional renovation loan?  ​​
All renovation style loans are set up to allow the buyer (or the refinancing homeowner) the opportunity to renovate a home to a condition that is more valuable than it is at loan closing. It gives the borrower the opportunity to improve the property by providing funds for improvements and renovations. You can execute a room addition with a renovation loan.  These loans are not second mortgages.  They become the primary loan on the property. At closing improment dollars are put into escrow and paid out as the improvements are completed.
2. How does a renovation loan work?
Once a borrower is qualified by the lender the property is evaluated by a HUD consultant for compliance with FHA Minimum Property Standards.  A scope of work to bring the property up to minimum standard plus make borrower desired improvements is created by the consultant.  This scope includes projected costs. The property is then appraised using the write up and the property as it stands. Concurrently a contractor is brought into the picture.  He bids the job.  If the contractor and the consultant differ on costs the differences are negotiated to where they agree.  Once all the pieces are in place the loan closes, the property sale is final and the repair funds go into an escrow fund to be drawn on as the repairs and improvements are made.

3. When do I need a consultant?
A consultant is required for all HUD-203K loans and Homestyle when the renovation and repair costs exceed approximately $31,800 OR whenever structural repairs or structural modifications are included in the work scope. Short of that you may not be required to retain a consultant but your lender may recommend that you do.

4. What is a work scope, WWU or SoR?
All of these terms refer to the detailed write up that your consultant will provide to you defining all work that is planned for the property.  It defines work required to meet HUD minimum property standards as well as work desired by you to further improve the property. It includes costs as estimated by the consultant.

WWU means "Work Write Up".
SoR means Specification of Repairs. This is the term used by HUD for the scope of work.
5. Who selects my consultant?
Per HUD regulations the borrower has the right to select his consultant. The HUD website has a list.
Please visit this link for more detail on selection. 

6. How do I apply for a renovation loan?
Simply contact a mortage lender. Most offer renovation loans. However, this can be tricky.  Some are more well versed in the mechanics of these loans than others.  Through experience, your consultant can lead you to lenders with the required expertise or help guide your preferred lender through the process. If you have decided on a less experienced lender, your consultant can work with that lender to make it come together.

7. Can I do my own work?
Almost no lenders allow for borrowers to include “self help” in their repair plan. That said, some contractors allow owners to do their own work in conjunction with contractor work.  But homeowner  self help work can not be part of the SoR nor can it be any work required to meet Minimum Property Standards.

8. What are the fees and qualifications for a renovation style loan?
Lender fees can vary by lender. Qualifications are similar to any mortgage. Consultant fees are set by HUD. All consultant fees are paid by loan funds and become part of the loan. 
I require a $300 payment due at the initial site vist ($400 if over 40 miles from our office). However, this out of pocket payment, can be reimbursed to you from closing funds. I accept
Major Credit Card and PayPay payments for the initial site visit.

9. Who selects my contractor?
You are 100% in charge of selecting your licensed contractor. However, through experience in the business, your consultant may be able to help you with that selection depending on where the property is.


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