From the contractor’s perspective, the 203K inspection is probably the single most important part of the 203K process. The contractor doesn’t get paid for his work until an inspection actually takes place.
But let’s take a step back. The 203K inspection is the official FHA inspection of the property, and it can only be done by the 203K consultant. When applying for the 203K loan, you are required to select a consultant. Based on budget and the scope of work, the consultant determines the number of “draws.” Draws are the total number of payments and inspections.
My project has a total of five draws. I selected my consultant based on the feedback I got on Brownstoner Forum last year. My consultant has been great and even gave tips to make the process go more smoothly.
When to schedule a draw? How it works is that your contractor will complain to you about how he’s low on cash and then you will tell him he needs to finish more stuff before you call the consultant. (I’m only slightly joking about this.) Prior to the first inspection, I had absolutely no idea what to expect. (more…)