HUD does not technically "certify" 203k contractors. However, 203k contractors must be approved by the bank.
Video Transcript
Couple of things that I read here. It says, I don't think you have to use specific contractors to complete the work. You only have to use a 203k consultant. That's a great comment, that is true. Contractors, you can really use anybody. There is no true certification for a contractor. However, there are websites out there, such as 203kcontractors.com, in which offer certification programs for contractors, but it's not a government-sponsored certification. So, it's good for them to have it, but it's definitely not something that's required. There is no list; I've had many people say to me before, you know, where's the HUD certified list of contractors that can do 203Ks? Really, any contractor can do it. The things that you really want to keep in mind, we want to get contractors that are well-funded, that understand how they're gonna get paid, and can work within the confines of the loan. When you're looking for a contractor you really just gotta find somebody that understands the process. Any good lender can educate a contractor on how to do these products. So, don't feel as if you have find a contractor that only knows how to do 203Ks, or if they're not certified we can't use 'em. That's not the case, so don't let that hold you back. What I would tell you is there are plenty of contractors that definitely do them. A great thing to look for is a contractor that does insurance work, because contractors that do insurance work typically are used to getting paid after the work is complete for work in place. And that's a big change from what your normal contractor who comes in, he wants 50% up front and he's got you on his own pay schedule. Renovation loans don't work that way. So, finding a contractor that understands it is huge. Listen, thank you so much, guys. I really appreciate you being here today on this podcast and this blog, Renovate This.