203(k) Consultants

HUD Handbook 4000.1 >> 203(k) Consultants

Editor’s note: This section of the FHA Single Family Housing Policy Handbook explains the application and certification process for FHA 203(k) consultants, as well as the process for recertification. The following information was adapted from HUD Handbook 4000.1 and is effective 03/14/16.

a. 203(k) Consultant Roster

Effective for case numbers assigned on or after March 14, 2016

The Standard 203(k) Rehabilitation Mortgage program requires the use of an FHA-approved 203(k) Consultant. FHA maintains a list of qualified Consultants on the FHA 203(k) Consultant Roster. Only a Consultant on the Roster may be selected by the Mortgagee to conduct Consultant functions in the 203(k) program.

b. Application and Approval Process

Included in this section are:

i. Eligibility Requirements

ii. Submitting the Application

iii. Incomplete Application

iv. Application Approval

v. Application Denial

vi. Biennial Recertification

i. Eligibility Requirements

(A) Standard To become an approved 203(k) Consultant, the prospective Consultant must be able to perform all duties outlined in 203(k) Consultant Requirements and fully understand the requirements of the 203(k) Rehabilitation Mortgage Insurance Program. The prospective Consultant must meet the qualifications for one or more of the following:

  • be a state-licensed architect;
  • be a state-licensed engineer;
  • have at least three years of experience as a remodeling contractor or general contractor; or
  • have at least three years of experience as a home inspector.

The prospective Consultant must not be listed on:

  • the General Services Administration’s (GSA) System for Award Management (SAM);
  • HUD’s Limited Denial of Participation (LDP) List; or
  • HUD’s Credit Alert Verification Reporting System (CAIVRS).

(B) Required Documentation

(1) Narrative Description

The prospective Consultant must submit a narrative demonstrating that they fully understand the requirements of HUD’s 203(k) Rehabilitation Mortgage Insurance Program, and describing their ability to:

  • conduct Feasibility Studies;
  • review or prepare architectural exhibits;
  • prepare a Work Write-Up and Cost Estimate;
  • complete Draw Request Inspections; and
  • prepare Change Order requests.

(2) Location and Eligibility

The prospective Consultant must indicate the states in which they will be doing business and provide Consultant Eligibility Requirement documentation for each state. If the prospective Consultant will be doing business in more than one state, the Consultant must identify the state in which the Consultant will perform the majority of their business.

(3) State Licenses

(a) State-Licensed Architect The prospective Consultant must submit proof of current license.

(b) State-Licensed Engineer The prospective Consultant must submit proof of current license.

(c) Home Inspector The prospective Consultant must submit:

  • proof of current license if the applicant is located in a state, county, or other local jurisdiction that requires the licensing of home inspectors to perform the duties of a 203(k) Consultant; or
  • if a current license is not required, a narrative description of their experience.

For the purposes of this requirement, FHA considers “located” to mean “doing business,” and “license” to mean “license, certificate, registration, or approval.”

(d) Remodeling or General Contractor The prospective Consultant must submit:

  • proof of current license if the applicant is located in a state, county, or other local jurisdiction that requires the licensing of contractors; or
  • if a current license is not required, a narrative description of their experience.

For the purposes of this requirement, FHA considers “located” to mean “doing business,” and “license” to mean “license, certificate, registration, or approval.”

(4) Certification for Placement and Retention on the 203(k) Consultant Roster Consultants and prospective Consultants must submit a 203(k) Consultant Roster Certification on their letterhead.

ii. Submitting the Application

The application documents must be submitted to the Jurisdictional Homeownership Center (HOC) based upon the state where the Consultant will perform a majority of their business. Applications must be submitted to the attention of the Processing and Underwriting Director.

iii. Incomplete Application

An applicant who submits an incomplete application package will receive notification indicating the information required to cure the deficiency.

iv. Application Approval

FHA will inform the applicant if they are approved for placement on the FHA 203(k) Consultant Roster. Inclusion of a Consultant on the Roster means only that the Consultant has met the qualifications. 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.

Consultant Identification Number

Each prospective Consultant who is approved will be provided a Consultant Identification (ID) number and will be informed of their recertification due date. The Consultant ID number is required prior to doing any Consultant work associated with any 203(k) Mortgage and must be included on all documents that require the Consultant’s signature.

v. Application Denial

Applicants deemed ineligible for placement on the FHA 203(k) Consultant Roster will be informed they are not approved for placement on the Roster and the reason the applicant has not met the qualifications. To request placement on the Roster, the applicant must submit a new application after resolving any issues.

vi. Biennial Recertification

To retain placement on the FHA 203(k) Consultant Roster, the Consultant must recertify every two years from the date of placement on the Roster. The Consultant is required to recertify that they are still in compliance with all laws, regulations, licensing, certification, registration or other approval requirements that govern their ability to perform as a 203(k) Consultant in the states where they do business.

Consultants must submit the required updated certification and attachments to either:

email: answers@hud.govSubject line: 203(k) Consultant Recertification; or
regular mail:U.S. Dept. of HUD
Attn: 203(k) Consultant Roster
451 7th Street, SW, Ste. 9266
Washington, DC 20410

203(k) Consultants who fail to meet the recertification requirements will be removed from the 203(k) Consultant Roster. To request reinstatement on the Roster, the Consultant must submit a new application after resolving the issue.

Phased Biennial Recertification for Existing 203(k) Consultants

Existing 203(k) Consultants who are on the FHA 203(k) Consultant Roster prior to March 14, 2016, must recertify every two years according to the following schedule.

203(k) Consultant ID begins with the letter: Recertify every two years by:
A October 1
D January 1
P April 1
S July 1