The 203(k) Consultant insures all HUD minimum standards are met. The Consultant will walk-thru the property, with the Buyer, to incorporate any client desired improvements, make suggestions which the Consultant believes will enhance the home, as well as the HUD required improvements. 

The Draw Request Inspections, a maximum of five are allowed, insure all repairs are made, pursuant to current building codes and that the finished structure is substantially the same as that upon which the loan commitment is based.

There is a line item, in the Work Write-up, where I list the amount paid for the initial inspection. The buyer will be reimbursed, when the 1st Draw Request is made, after work has started.

There will also be additional inspection fees, for each Draw Request Inspection, which will be included in the rehab cost and will be billed to and paid by the lender’s Draw Request Funder. 

Currently, I’ve noticed, the average fee, for REOs, has been $600 to $700.

The below fees are paid COD, by the buyer at the time of the initial inspection.