The 203k Contractor Directory helps lenders, Realtors® and consumers locate the Certified 203k Contractors for their FHA 203k loan needs. Through the 203k Contractor Certification Program, even the most experienced contractors receive their education on the FHA 203k loan, the process through which they become a Certified 203k Contractor.

Almost any contractor may be willing do work under the FHA 203k Renovation Loan program, but not all contractors have the financial stability necessary to participate because of the compensation structure designed by HUD nor the understanding of HUD’s 203k Loan Guidelines. Also, contractors who have not been properly educated on the 203k or contractors who do not have extensive 203k experience will get lost in the paperwork, requirements, guidelines, lender overlays, necessary time-lines and processes involved with the FHA 203k loan program. When these types of contractors attempt to do 203k work, most walk off the job out of frustration and leave the homebuyer/borrower and lender in a difficult position that can be almost impossible to correct.

Just an electrician is a type of a contractor who is not considered for plumbing, roofing or any other work because they cannot validate their understanding of or competency in those fields, the same is true for the FHA 203k loan. It is important to hire a contractor who has the education, knowledge and understanding of this unique government-insured renovation loan, such as a Certified 203k Contractor.

The Certified 203k Contractors listed in the 203k Contractor Directory have completed an education course on the FHA 203k loan, read the 72-page 203k Contractor Manual, passed a 6-page 203k test, had their references, license and financial abiltity verified and comprehend HUD’s guidelines regarding the 203k loan. These Certified 203k Contractors are validated by being listed in the 203k Contractor Directory and should display the Certified 203k Contractor logo on their Websites. Upon request, you can receive a copy of their Certificate of Approval.

While HUD/FHA approves FHA lenders, appraisers and 203k Consultants, HUD/FHA does not approve, certify or endorse remodeling or general contractors since 1995 (Mortgagee Letter 95-97). The 203k Contractor Directory serves the need to educate contractors on the FHA 203k Loan program and provides to consumers, lenders and Realtors®, a method of validation (Certification) of a contractor’s understanding, experience or competency of the FHA 203k loan. The contractors listed in the 203k Contractor Directory will aid in the success of your FHA 203k loan. History The 203k Contractor directory began as a local directory for the Phoenix, Arizona area, but expanded to a nationwide format due to consumer, lender, Realtor®, and contractor requests.

Operating as a wholly-owned subsidiary of the Chelden Group LLC which began in 2009, this Arizona based organization is a minority and woman-owned organization, co-owned by Amy Chou and Paul Welden (Director). Paul Welden, is also an exclusive buyer’s real estate agent in Phoenix, Arizona, which is where he learned of the need for locating knowledgeable and educated contractors for the FHA 203k loan. He developed, designed and is currently the Director for the 203k Contractor Program. In 2005, Paul Welden participated in his first FHA 203k as a real estate agent in Phoenix, Arizona. At this time, there were no 203k loans being done in the Phoenix area, and he had a nearly impossible time finding any remodeling or general contractor to assist him and his client with their FHA 203k loan. Paul understood the benefits of the 203k to Realtors®, Mortgage Lenders, Consumers, Contractors and the real estate community as a whole, and he thought that if others wanted to utilize the FHA 203k loan but encountered the challenges he did with locating qualified contractors, that the 203k program would suffer. So, he took a few local contractors "under his wing" and helped them to understand the 203k and started a local online directory of 203k Contractors. In a very short time, word about Paul’s 203k Contractor service spread across the country. He was receiving requests all across the country from consumers, lenders, Realtors®, Asset Managers ….. all looking for contractors in their area who were qualified to do work under the FHA 203k loan program. So, the 203k Contractor service quickly expanded to the national education and certification program that you see today. Thanks to the 203k Contractor Directory, in the Phoenix area there were 38 FHA 203k loans done in June 2011 and 221 since October 1, 2010. Nationwide in April 2011, there were 2,077 FHA 203k loans done and 14,914 done since October 1, 2010, and the FHA 203k loan program continues to grow. In fact, the FHA 203k loan has seen over a 500% increase in its use during the past 5 years.

For more information on FHA 203k loan program or the 203k Contractor Directory, go online to http://203kContractors.com.