Home buyers and people looking to refinance their home must work closely with the HomeStyle Consultant to coordinate the various steps involved throughout the process. A list of HUD licensed Consultants can be found HERE whereas their approximate fee schedule can be found HERE. The exact fee to be paid depends on the cost of the proposed repair work.
If the residential property being considered for purchase or refinance is in need of repairs and the scope of the work to be done exceeds the Fannie Mae HomeStyle $15,000 threshold, then the following essential steps involves the involvement of a HUD-accepted HomeStyle Consultant. Should the work amount not exceed the $15,000 threshold, then a Consultant is not necessary.
Initial Site Visit
Call up a local HomeStyle Consultant listed on the HUD licensed Consultants website link above and schedule an appointment for the home site visit. The entire list of approved HomeStyle Consultants listed by state can be accessed through the HUD website.
Upon visiting the home site, the consultant will perform a thorough examination of the property and provides with an assessment about the project’s feasibility under the HomeStyle loan requirements. If the consultant determines that the project is indeed feasible, a formal agreement called the Specification Of Repair (SOR) is prepared.
Architectural Exhibits, Detailed Work Write-up and Cost Estimates
Based on the initial site visit and inputs from buyer regarding their renovation plans, the HomeStyle Consultant will prepare a concise document regarding the project’s scope and specifications. Architectural exhibits along with a detailed cost breakdown for each of the repair tasks will also be included. Additionally, the HomeStyle Consultant will also prepare lender packages and contractor bid packages that contain everything mentioned above. Finally, draw request forms based on the work plan to be followed will be prepared.
Once the detailed work write-up is completed, a copy of the complete package with all the required documents is submitted to the lender, contractor and the borrower.
Please click here HomeStyle to go back to the Fannie Mae HomeStyle home page.
