With the onset of the current market crisis and the number of homes that are currently on the market in what can only be described as less then “move-in” condition, the use of the HUD/FHA 203K loan program has gained in popularity.
The 203K loan program (standard 203k or the 203k streamline loan) are programs that allow the borrower/homeowner to include the cost of repairs/upgrades in the homes financing to get the home in livable condition. This gives the borrower/homeowner the needed funds to complete the renovations.
The appraiser’s role in these types of loans is quite simple. The appraiser is given a list of items being considered for repair. This is typically in the form of an estimate by a contractor that lists out all the items being