A 203(k) consultant is likely the most valuable resource when you buy a home and make major repairs leveraging a standard renovation loan.

When you buy a property that requires repairs in excess of $35,000, you are likely considering a project that may require professional experience and expertise in construction, architecture, engineering and building codes. Most homebuyers do not have the level of experience or knowledge required to oversee such a major undertaking.  For this reason, a 203(k) consultant is required by lenders.

Most 203(k) consultants are licensed home inspectors, general contractors, and sometimes architects or engineers.They must submit various documents that demonstrate their expertise to HUD (Department of Housing and Urban Development). The requirements are fairly rigorous, and only HUD-approved consultants are listed on the official FHA 203(k) Consultant Roster.

Below is  a high-level overview of what a 203(k) consultant does during the home purchase transaction.

A 203(k) consultant inspects the property and discusses with you about both the repairs that will be required to meet HUD’s Minimum Property Standards and the optional renovations you would like to make beyond the required items.

The consultant prepares documentation that the lender uses to determine the loan amount and underwrite the loan. This paperwork typically includes a feasibility report, architectural plans, and a detailed work write-up that reflects specifications on all of the repairs that will be done, including:

  • Cost of materials and cost of labor for each repair.

  • Recommended “contingency funds” amount to be set aside in case there are cost overruns.

  • Recommended inspection schedule, showing the times during construction when the Consultant will inspect the work performed and completed.

If the lender needs additional paperwork,  for example a termite inspection report or certification that a roof is structurally sound, the consultant and lender partner together to coordinate ordering the reports and making any needed adjustments to various documents.

When your loan closes, a Repair Escrow Account is set up for your selected General Contractor to draw from. The 203(k) consultant inspects phases of repairs as they are completed, and provided the work is done in accordance with building requirements, informs the lender that funds can be released from the Escrow Account to pay the contractor.


Vaughn Harrison (HUD 203(k) Consultant ID: A1151) transcends the standard Consultant requirements by drawing from experience as a General Contractor, a corporate level Program and Project Manager, Electrical  Engineer, Strategic Manager and Licensed Real Estate Managing Broker. When you desire optimum representation in your bank funded renovation project, look no further than Vaughn Harrison.

Contact Harrison Vaughn for more information for your next renovation project!!!