What is a HUD Consultant and What do they do?

"Hey, if you're working on a renovation or home improvement loan, you've probably been asked to hire a HUD Consultant. So, what exactly is a HUD Consultant and what do we actually do?

Simply put, a HUD Consultant is a third-party expert required by the bank to act as their eyes, ears, and aid throughout your project.

We play two main roles:

On the front end, we act a lot like an estimator or insurance adjuster. Once the job is ordered, we'll reach out to schedule a site visit, usually within 3 to 7 days.

During the visit, we'll walk the entire property with you — outside and inside every room. We'll take measurements, pictures, and go over the full scope of work. If you're doing an FHA, VA, or USDA loan, we'll also make sure any items needed to meet Minimum Property Standards are included — things like hazardous, damaged, or unfinished areas that usually show up on a home inspection.

Our goal is to create a detailed Scope of Work and a realistic cost estimate. We look for high, low, or missing prices so you have the best information possible. This Scope of Work helps you pick the right contractor and make sure everything gets done.

Once you choose your contractor, we help them put together a proper bid — line by line, with clear descriptions, labor, and material costs separated. That bid gets turned into the official SOR document your lender needs for appraisal and underwriting.

After closing, we switch to draw inspectors. Every time your contractor finishes a stage and requests a draw, we come out, inspect the completed work, take pictures, and approve funds based on what's actually been done.

Important note: We generally only pay for completed work. Some lenders allow material draws, but not all — so check with your specific lender.

We repeat this process until the project is finished or all funds are disbursed. Most projects allow around 5 draws, but it can vary.

Think of us as your extra set of eyeballs and an aid to help your project run smoother and stay on track.

For our pricing, check out the pricing page on our website. FHA HUD sets the maximum fees, and we follow those guidelines.

If you have any questions about your specific project, feel free to reach out — we're here to help."