This is a great question that we get weekly. Can I, as the borrower, do any of the renovation work on my FHA 203k Renovation Loan project?

Much like all of the other questions, this one is also not straight forward. The answer is yes but likely no.

Let me explain. Per FHA 203k HUD, borrowers are allowed to do "self-help" that accounts for no more than 10% of the total renovation budget. This means borrowers can do some of the work BUT can only add material costs to the loan, no labor costs. This is sweat equity!

However, most lenders have learned from experience, that this often times screws up jobs and causes loans/projects to drag out for months and sometimes not close at all.

• This could be because the borrowers did not do their portion properly and the contractor had to step in. 
•  This could be because the borrowers took too long and caused the contractor to go find other work. 
•  This could be because the borrowers got sick or hurt and now there isn't enough money in the bid for the contractor to complete the work themselves. 

Unfortunately "self help" goes wrong so often that most lender just don't allow it. Unless....your are a pro or tradesmen who has experience or has been certified in a specific field. These people are sometimes allowed to do their own work because of their proven back ground. Again, only material can be paid for with the loan. No labor costs.

Moral of the story - just leave it to the pros.  Trying to save a few hundred dollars will end of costing WAY MORE in time and money to fix and issues and headaches. 

Let us help!