The accreditation as a Certified 203k Contractor® is earned by a contractor who has met the requirements set forth by the 203k Contractor Certification Program, which include education on the 203k, knowledge assessment on the 203k, and verification of license, insurance, references, and financials.
In 1995, HUD stopped approving builders/contractors, eliminated this approval process and the associated database (Mortgagee Letter 95-57). Because HUD/FHA do not certify, approve, or endorse remodeling/general contractors, there is no such thing as a remodeling or general contractor being a HUD/FHA approved contractor.
Instead, HUD/FHA allow the borrower to hire whomever they want and require the lender to determine that the selected contractor is acceptable for 203k work by verifying their license, insurance, references, experience, education, and understanding of the 203k (Mortgagee Letter 00-25).
Because lenders do not educate contractors or verify their financials, the 203k Contractor Certification Program has been chartered with the responsibility of preparing contractors to do work under the FHA 203k Loan Program.
Earning the accreditation as a Certified 203k Contractor® is the validation that contractors have been properly educated on the 203k, adequately know/understand the 203k, and have sufficient and strong financials to afford the startup costs and ongoing expenses associated with 203k renovation projects.
The Certified 203k Contractor® accreditation exceeds all HUD/FHA requirements and lender underwriting guidelines.
All Certified 203k Contractors® will be listed in 203k Contractor Directory, should display the Certified 203k Contractor® logo on their marketing, and can provide you with a copy of their Certificate of Accreditation.
Go to the Contractor Search page to search for all the Certified 203k Contractors®.