Through the 203k Contractor Certification Program, contractors receive education on the 203k to help them better understand the complexities, guidelines, paperwork, time lines, compensation structure, lender overlays, necessary and recommended processes, eligible and ineligible items in addition to roles of the various participants (lender, consultant, Realtor®, and consumer) in the 203k. This education is required in order to earn the designation as a Certified 203k Contractor. To verify their 203k Contractor Certification status, contractors will be listed in the 203k Contractor Directory and should display the Certified 203k Contractor logo and you can request to see a copy of their Certificate of Approval.
Until 1995, HUD maintained a database of HUD approved builders. Since disbanding that approval status in 1995, HUD/FHA no longer certifies, approves or endorses contractors/builders, including those who want to do work under the 203k program. Instead HUD/FHA allows the customer/borrower to hire whomever they want and requires the lender making the loan to determine that the customer’s/borrower’s selected contractor is “acceptable” to do the work by verifying the contractor’s references, credentials, work experience, education and understanding of the 203k (Mortgagee Letter 00-25). Because lenders do not have an education program for contractors for the 203k loan, contractors complete the 203k Contractor Certification Program to receive the 203k education needed and get listed in the 203k Contractor Directory as the method of validating their understanding, experience, and competency in the FHA 203k loan program. The Certified 203k Contractors listed here on the 203k Contractor Directory have completed the 203k Contractor Certification Program, which means they know the guidelines, paperwork, time lines, compensation structure, lender overlays, necessary steps, recommended processes, eligible and ineligible items, as well as roles of the various participants (lender, 203k consultant, Realtor® and consumer) with the FHA 203k loan.