The 203k consultant's fee varies depending on the cost of the repair work to be financed through a FHA 203k loan. The actual fees may vary from the amounts published by the HUD in its general fee schedule for the consultants performing the feasibility analysis report and other associated tasks. For the HUD established fee, a 203k consultant will personally visit the property and provide all the necessary architectural exhibits along with a complete work write-up.
The base fee is $400 for the repairs that range between $5,000 to $7,500. For amounts ranging between $7,501 to $15,000 the HUD 203k consultant fee is $500. For renovation work amount between $15,001 to $30,000, it's $600. For the cost of rehab work that falls in the range of $30,001 to $50,000, the 203k consultant fee is $700. The fee will be $800 for fix-up work that falls between $50,001 to $75,000. If the proposed repair work costs between $75,001 to $100K, the fee would be $900. In those rare cases where the renovation work to be undertaken exceeds $100,000, the fee shall be $1,000. The above mentioned FHA 203k consultant fee amounts are meant for single family residential homes. For multi-family homes, the fee charged may be higher. Typically, it would be an additional $25 for each unit beyond the 1st one.
If you are considering 203k financing using a streamline loan that allows for financing repairs under $35,000, there is no need for a feasibility analysis report performed by a consultant on HUD roster. For consultants that may need to travel beyond their local area(>30 miles for the round trip), mileage costs may also be chargeable along with the regular HUD established fees.
It is not mandatory that a buyer use the services of a 203k consultant approved by HUD. They can opt to use an independent consultant such as a contractor to prepare the exhibits or use an architect or engineer holding a valid state license. While the fees charged by an engineer or architect are not bound by the above mentioned fees, they must still be in a reasonable range.
Using a HUD-accepted consultant doesn't mean that HUD assumes any warranties regarding their competence or the quality of their work.
Even if you used an independent consultant to do the feasibility analysis, a mandatory pre-appraisal inspection must be performed by a HUD-accepted fee consultant to ensure that the property is in compliance with 203k program's guidelines and requirements. To perform this review, the utilities must be on prior to the site visit. The fee to be charged is fixed and depends on the amount of repair work. For properties that require less than $15,000 in total rehab work, the fee is set at $100. For the repairs that range between $15,001 to $30,000, the fee for a consultant is $150 and $200 for any work above $30,000. These fees are based on the review of single-family homes. For multi-family properties, an $50 per each additional unit applies, provided these units come under the same case number as the primary unit. In cases where an additional review may be necessary, another $50 as fee is applicable.
If the distance is more than 30 miles (round trip) to visit the site from the reviewer's official business location, additional mileage charges as established by the local HUD field office can be charged. Any additional charges related to Toll may also be applicable.