About the 203k Contractor Directory

The 203k Contractor Directory enables lenders, Realtors® and consumers to locate the Certified 203k Contractors for their FHA 203k loan needs. Through the 203k Contractor Certification Program, even the most experienced contractors receive their education/validation on the FHA 203k loan, the process through which they become a Certified 203k Contractor.

While almost any contractor may be willing to do work under the FHA 203k Renovation Loan program, not all contractors have the financial stability necessary to participate because of the compensation structure designed by HUD or have the appropriate understanding of HUD’s 203k Loan Guidelines. Additionally, contractors who do not have extensive 203k experience or proper education on the 203k, will get lost in the paperwork, requirements, guidelines, lender overlays and critical time-lines involved. As a result, many of these contractors who attempt to do 203k work walk off the job out of frustration and leave the homebuyer/borrower and lender in a challenging situation that can be difficult to correct.

The FHA 203k Loan is not a typical remodeling/renovation process because of the contractor compensation structure, unique rules, time lines, procedures, paperwork, and specific government guidelines, which means that very few contractors are qualified to be a 203k Contractor. The success of the 203k depends on working with a contractor who has validated 203k education/experience, such as a Certified 203k Contractor.

The contractors listed here in the 203k Contractor Directory are Certified 203k Contractors, having completed an extensive 30-day program on the FHA 203k loan, consisting primarily of a completing a comprehensive 203k education course and passing a 7-page 203k test, demonstrating comprehension of HUD’s guidelines regarding the 203k loan. Additionally, the certification process includes verifying customer and business references, license, insurance and the contractor’s financial stability and ability to afford the startup costs and ongoing expenses of a 203k project. These Certified 203k Contractors are validated by being listed in the 203k Contractor Directory and should display the Certified 203k Contractor logo on their Websites. Upon request, their Certificate of Approval can be provided.

While HUD/FHA approves FHA lenders, appraisers and 203k Consultants, HUD/FHA does not approve, certify or endorse remodeling or general contractors or builders and has not done so since 1995 (Mortgagee Letter 95-97). The 203k Contractor Program serves this need by educating contractors on the FHA 203k Loan program and providing to consumers, lenders and Realtors®, a method of validation of a contractor’s understanding, competency and experience with the FHA 203k loan. The Certified 203k Contractors listed in the 203k Contractor Directory are vital to the success of the FHA 203k loan. (continued below)

Preferred 203k Lenders

History

The 203k Contractor directory began as a local directory for the Phoenix, Arizona area, but expanded to a nationwide format due to consumer, lender, Realtor®, and contractor requests. The National Director, Paul Welden, has been an exclusive buyer’s real estate agent in Phoenix, Arizona, since 2005, which is how he learned of the need for locating knowledgeable and educated contractors for the FHA 203k loan. He founded, developed, and is currently the Director for the 203k Contractor Program.

When Paul participated in his first FHA 203k as a real estate agent in Phoenix, Arizona, there were no 203k loans being done in the Phoenix area and only a few hundred nationwide, which is why he had a nearly impossible time finding any remodeling or general contractors to assist him and his client with their FHA 203k loan. He then knew that if others wanted to utilize the FHA 203k loan but encountered the challenges he did with locating qualified contractors, that the use of the FHA 203k Loan Program would be minimal. Since, Paul understood the many benefits the 203k provided to Realtors®, Mortgage Lenders, Borrowers, Contractors and the real estate community as a whole, he took a few local contractors "under his wing" and helped them to understand the 203k and started a local online directory of 203k Contractors for Phoenix.

In a very short time, word about the 203k Contractor Directory service spread to all parts of the country. The 203k Contractor Program was receiving requests all across the US from borrowers, lenders, Realtors®, Asset Managers ….. all looking for contractors in their area who were qualified to do work under the FHA 203k loan program. So, the 203k Contractor Program expanded to the national education and certification program currently in use today. Thanks in part to the 203k Contractor Directory, there were 2,148 FHA 203k loans done nationwide in November 2011 and 25,461 203k Loans done since October 1, 2010, and the use FHA 203k loan program continues to grow. In fact, the FHA 203k loan has seen a ~700% increase in its use since the 203k Contractor Program started in 2006.

The 203k Contractor Program has been reviewed by HUD and is also recognized and is used by many sources, including but not limited to:

Academy Mortgage,
AnnieMac Home Mortgage,
CityWide Home Loans,
HUD approved 203k Consultants,
Hometown Lenders,
Waterstone Mortgage,
Wells Fargo,
Memphis Area Home Builder’s Association,
the New York Times and by
the California Association of Realtors® (October 21, 2011 edition of their Market Matters).

For more information on FHA 203k loan program or the 203k Contractor Directory, please proceed to the Contact page of the 203k Contractor Directory and/or visit the FAQ page. Contractors who would like to become Certified 203k Contractors and listed in the 203k Contractor Directory, should proceed to the Certification page.