How Do I Become a 203k Consultant?

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Application Process

To apply for placement on the FHA 203(k) Consultant Roster, an applicant must submit the information listed below to the HOC in the area in which he/she will be conducting business. Please see HUD Mortgagee Letter 2000-25 for more information. The application information should be submitted in the following format. A list or resume documenting:

  • A minimum of three years experience as a remodeling contractor, general contractor or home inspector. A state license as a state certified engineer or architect may be submitted in lieu of the documentation of the three years experience;
  • Education;
  • Licensing (general contractor, home inspector, etc.). In those states where a Home Inspector is required to be licensed, the Department requires the applicant to be licensed and to provide proof of that licensing;
  • A narrative description of the current/prospective consultant’s ability to perform home inspections, prepare architectural drawings, use proper methods of cost estimating and complete draw inspections; and,
  • The applicant must also submit a certification verifying that the consultant has read and fully understands the requirements of HUD Handbook 4240.4, REV 2 (203(k) Handbook) and all related materials listed in Mortgagee Letter 2000-25.

Future Program Enhancement

To further evaluate the 203(k) consultant’s program knowledge, the Department will soon develop a formal examination process similar to the test FHA appraisers must now complete. The Department will issue additional guidance about this examination in the near future.

Incomplete Application Packages

An individual who submits an incomplete application package (defined above in the section entitled “application process”) will receive a letter indicating the information required to cure the deficiency. This letter will give the individual 15 days to correct any deficiencies. If the response does not satisfy the outstanding requirement in its entirety and within the prescribed deadline, the individual must wait an additional 90 days prior to re-applying.

Application Approval or Denial

FHA will approve or deny the consultant’s application to be listed on the FHA 203(k) Consultant Roster, based upon the information submitted. Inclusion of a consultant on the list means only that the consultant has met the qualifications prescribed by FHA for placement on the Roster; 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. If a consultant already on the Roster is found to not be in compliance with requirements of the 203(k) program, the consultant may be removed from the roster.

Participation Letters and Consultant Identification Numbers

Each applicant who meets the 203 (k) program requirements will be issued a participation letter. This letter will contain the consultant’s name, business address and a consultant identification number. This number will be needed by the consultant prior to doing any work associated with any 203(k) loan. This consultant identification number will be used to assist the Department in evaluating the work of consultants. Mortgagees must enter the consultant’s identification number on the insurance application screen and will not be able to process 203(k) cases without it.

Each consultant will be provided with only one participation letter. After the letter is mailed, mortgagees, consultants and others can verify that the consultant has been placed on HUD’s 203k consultant roster.

Windstorm Mitigation Inspections Help Save Money on Insurance


Insurance companies analyze risk, and then base their premiums on that risk. There is direct correlation between risk and premium. As the risk goes up so does the premium. That is the reason insurance companies get a driving record check before setting a premium for automobile insurance. Drivers with clean records get lower premiums. The same applies to life insurance. Healthy people with good results from a physical get better rates. It only makes sense then that an insurance company selling a policy that covers wind damage to a home would want to know just how vulnerable the home is to that type of damage. From the homeowner’s perspective, obtaining a favorable windstorm mitigation inspection is like getting a clean bill of health. It means lower premiums. Windstorm mitigation inspections save money.
Home inspectors perform many functions. They identify problems for sellers to fix prior to listing their home for sale. They perform inspections for lenders so they can determine if the home is worthy of the requested mortgage. Buyers are protected by inspections which point out problems that sellers need to fix before closing the sale. For homeowners, windstorm mitigation inspections are the secret to lower insurance premiums. So what do inspectors look for in these types of cases. Once that question is answered, homeowners can take steps to ensure favorable results and lower insurance premiums.
Just like physicals for life insurance policies, companies selling storm protection look for certain items in windstorm mitigation inspections. For example, one area of a home that is susceptible to wind damage is the roof. Specifically, the shingles on a roof are prone to be torn away in a storm. How does a homeowner obtain a favorable report on their shingles? It is all about the method of attachment so the shingles will stay in place in high winds which are normally accompanied by rain. In many cases current building codes require the shingles to be attached in a manner that meets the insurance company’s requirements. For older homes, it is a matter of upgrading the roof to the new standard. As a backup in the event some shingles come loose, another water resistant barrier adds to the protection. The combination of the two layers protects the home and lowers insurance costs. Windstorm mitigation inspections verify that the proper standards are met.
Take a look at your homeowner’s policy. Examine your premium. Are you paying too much for wind coverage? If so, you need to contact a home inspection service that is qualified to perform and has completed and issued many reports concerning the condition of a home. The cost of the inspection will be paid for by lower insurance policy premiums. Prove to your insurance company that your home is windstorm ready. Show that your home is a low risk and thus deserves a lower premium. Make that call and schedule a home inspector to perform a mitigation inspection for wind damage.