The project referee between you, your contractor, and the lender.
A 203(k) consultant inspects the house, writes up the work, estimates cost, and inspects each draw. HUD requires one on the Standard 203(k) and makes it optional on the Limited. Ken Clark Jr. explains how to find one on HUD's roster and what to ask before you hire.
Short answer: they plan and monitor the renovation for the loan, acting as the liaison between you, your contractor, and the lender.
According to HUD's 203(k) consultant fact sheet, the consultant inspects the property and prepares a feasibility study (if requested), architectural exhibits, the work write-up, cost estimate, draw requests, inspections, and change orders, and makes sure work is performed in compliance with FHA requirements.
Short answer: always on a Standard 203(k). On a Limited 203(k), a consultant is optional, and HUD allows the fee to be financed if you use one, per Mortgagee Letter 2024-13.
A lender may still recommend or require a consultant on certain Limited projects, for example when the scope is close to the cap or the home is older, depending on program guidelines. See Limited vs Standard.
Short answer: search HUD's 203(k) Consultant Roster, which lists consultants by name, city, and state, and filter for active status.
The roster is at entp.hud.gov (203k Consultants lookup). HUD says consultants can qualify as state-licensed architects or engineers, or with at least three years of experience as a state-licensed (if applicable) remodeling contractor, general contractor, or home inspector, and must certify that they understand Handbook 4000.1. Being on the roster is not a guarantee of quality, so interview more than one.
Short answer: experience, fees, turnaround, and independence.
Short answer: fees vary with the size of the project and number of inspections. Consultant fees may be included in the financed rehabilitation cost, subject to program guidelines.
Ask for the fee schedule in writing, including the initial work write-up, each draw inspection, change orders, and any re-inspection or mileage fees. We include these in your cost estimate so there are no surprises at closing.
Educational illustration only. Not an actual client, loan offer, or commitment to lend.
A buyer in Camden County, New Jersey, wants to remove a load-bearing wall and add a half bath in a 1950s Cape. They search the HUD roster for active New Jersey consultants, interview two, and hire one. The consultant's work write-up totals $96,000 with contingency, which lines up with the contractor's bid within a few hundred dollars. During the work, the consultant inspects four draws and documents one change order when old wiring is found behind the plaster.
Where available: PRMG renovation programs are available in every state where PRMG is licensed, which is all states except New York, including California and New Jersey, for eligible borrowers and subject to underwriting and program guidelines.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
A professional on HUD's 203(k) Consultant Roster who inspects the property, prepares the work write-up and cost estimate, inspects draws, and documents change orders.
Yes on a Standard 203(k). On a Limited 203(k), a consultant is optional.
Consultant fees may be included in the financed rehabilitation cost, including on a Limited 203(k) if you choose to use one, subject to program guidelines.
Search HUD's 203(k) Consultant Roster at entp.hud.gov by state and city, and filter for active consultants.
HUD lists state-licensed architects or engineers, or people with at least three years of experience as a state-licensed (if applicable) remodeling or general contractor or home inspector, who certify they understand Handbook 4000.1.
The consultant should be independent from the contractor. Ask about any business relationship before hiring.
No. A home inspection reports on condition. A consultant writes the renovation scope and cost estimate and inspects draws for the loan.
The lender reviews the contractor's license, insurance, and bid. HUD does not endorse contractors.
A final inspection confirming the work is complete, which supports release of the final draw.
HomeStyle is a Fannie Mae program with its own rules, and whether a consultant is needed depends on the project and program guidelines.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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