” I hereby certify that I have carefully inspected this property for
compliance with the general acceptability requirements (including
health and safety) in Handbook 4905.1. I have required as necessary
and reviewed the architectural exhibits, including any applicable
engineering and termite reports, and the estimated rehabilitation cost
and they are acceptable for the rehabilitation of this property. I have
no personal interest, present or prospective, in the property,
applicant, or proceeds of the mortgage. I also certify that I have no
identity-of-interest or conflict-of-interest with the borrower, seller,
lender, realtor, appraiser, plan reviewer, contractor or subcontractor.
To the best of my knowledge, I have reported all items requiring
correction and that the rehabilitation proposal now meets all HUD
requirements for 203(k) Rehabilitation Mortgage Insurance.”
In my opinion, the most IMPORTANT part is the certification of no conflict of interests. Your consultant is REQUIRED to not have any conflicts. Kind of difficult to say this if the consultant is either stipulating contractors to be used, requiring specific specialty inspectors and most importantly is the estimator/project manager for your project – one would want someone independent and working for them, right?
Attached is the actual 203K Identity of Interest Statement which is required to be signed on each project by the lender.
While vetting your lender, realtor, and contractors… You would actually save the MOST MONEY, be properly vetting your 203k Consultant and ensuring you work with someone who only has your interest FIRST. For starters… Check to see that your 203k Consultant is actually licensed – current – in good standing (with no sanctions) : Click Here