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c. Application and Approval Process (04/10/2025)
i. Eligibility Requirements
(A) Standard
To become an approved 203(k) Consultant, the prospective Consultant must be able to perform all duties outlined in 203(k) Consultant Requirements and fully understand the requirements of the 203(k) Rehabilitation Mortgage Insurance Program. The prospective Consultant must meet the qualifications for one or more of the following:
• be a state-licensed architect;
• be a state-licensed engineer;
• have at least three years of experience as a remodeling contractor or general contractor; or
• have at least three years of experience as a home inspector.
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2. 203(k) Consultants
The prospective Consultant must not be listed on:
• the General Services Administration’s (GSA) System for Award Management (SAM);
• HUD’s Limited Denial of Participation (LDP) List; or
• HUD’s Credit Alert Verification Reporting System (CAIVRS).
(B) Required Documentation
(1) Narrative Description
The prospective Consultant must submit a narrative demonstrating that they fully understand the requirements of HUD’s 203(k) Rehabilitation Mortgage Insurance Program, and describing their ability to:
• conduct Feasibility Studies;
• review or prepare architectural exhibits;
• prepare a Work Write-Up and Cost Estimate;
• complete draw request inspections; and
• prepare Change Order requests.
(2) Location and Eligibility
The prospective Consultant must indicate the states in which they will be doing business and provide Consultant Eligibility Requirement documentation for each state. If the prospective Consultant will be doing business in more than one state, the Consultant must identify the state in which the Consultant will perform the majority of their business.
(3) State Licenses
(a) State-Licensed Architect
The prospective Consultant must submit proof of current license.
(b) State-Licensed Engineer
The prospective Consultant must submit proof of current license.
(c) Home Inspector
The prospective Consultant must submit:
• proof of current license if the applicant is located in a state, county, or other local jurisdiction that requires the licensing of home inspectors to perform the duties of a 203(k) Consultant; or
• if a current license is not required, a narrative description of their experience.
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2. 203(k) Consultants
For the purposes of this requirement, FHA considers “located” to mean “doing business,” and “license” to mean “license, certificate, registration, or approval.”
(d) Remodeling or General Contractor
The prospective Consultant must submit:
• proof of current license if the applicant is located in a state, county, or other local jurisdiction that requires the licensing of contractors; or
• if a current license is not required, a narrative description of their experience.
For the purposes of this requirement, FHA considers “located” to mean “doing business,” and “license” to mean “license, certificate, registration, or approval.”
(4) Certification for Placement and Retention on the 203(k) Consultant
Roster
Consultants and prospective Consultants must submit a 203(k) Consultant Roster Certification on their letterhead.
ii. Submitting the Application
The application documents must be submitted as email attachments to the FHA Resource Center at answers@hud.gov.
Applications must include in the subject line: 203(k) Consultant Application Documents.
iii. Incomplete Application
An applicant who submits an incomplete application package will receive notification indicating the information required to cure the deficiency. This notification letter will give the applicant 15 Days from the date on the letter to correct any deficiencies. If the applicant does not satisfy the outstanding requirement in its entirety and within the prescribed deadline, the approval will be denied and the applicant must wait an additional 90 Days before re-applying.
iv. Application Approval
FHA will inform the applicant if they are approved for placement on the FHA 203(k) Consultant Roster. The approval will be valid for a two-year period from the date of initial approval. When the Consultant is placed on the Roster, they will be given a recertification due date.
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2. 203(k) Consultants
Inclusion of a Consultant on the Roster means only that the Consultant has met the qualifications. 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.
Consultant Identification Number
Each prospective Consultant who is approved will be provided a Consultant Identification (ID) number and will be informed of their recertification due date. The Consultant ID number is required prior to doing any Consultant work associated with any 203(k) Mortgage and must be included on all documents that require the Consultant’s signature.
v. Application Denial
Applicants deemed ineligible for placement on the FHA 203(k) Consultant Roster will be informed they are not approved for placement on the Roster and the reason the applicant has not met the qualifications. To request placement on the Roster, the applicant must submit a new application after resolving any issues.
vi. Biennial Recertification
To retain placement on the FHA 203(k) Consultant Roster, the Consultant must recertify every two years. The FHA 203(k) Consultant candidate will receive email notification of an approved application with the recertification due date, which is two years from the application approval date. When the FHA 203(k) Consultant successfully completes recertification, they will receive a similar email notification with the next recertification due date. The FHA 203(k) Consultant can view the recertification due date on the 203(k) Consultants List page.
The Consultant is required to recertify that they are still in compliance with all laws, regulations, licensing, certification, registration, or other approval requirements that govern their ability to perform as a 203(k) Consultant in the states where they do business.
Consultants must submit the required updated certification and attachments by email to the FHA Resource Center at answers@hud.gov. The subject line must read: 203(k) Consultant Recertification.
203(k) Consultants who fail to meet the recertification requirements will be removed from the FHA 203(k) Consultant Roster. To request reinstatement on the Roster, the Consultant must submit a new application after resolving the issue.
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3. Direct Endorsement Underwriters