We get this question and run into this issue almost weekly.  Can my brother-in-law be my contractor?  The short answer is NO.  FHA 203k renovation rules state that you, a borrower, are not allowed to use any form of relative to be the contractor on your renovation job.  This would include, parents, brothers, uncles, in-laws, children, or any other relation.  One reason for this, MOST of the time, relatives provide borrowers with a Friends and Family discount. 

   A discount can be detrimental to a project for many reasons.  The main reason being, if FOR SOME REASON, your brother-in-law, were to get sick, hurt, or for some other reason not be able to finish the job, you now have a discounted amount of money to finish a job with a new contractor who WON’T want to give the same discount.  

   For example, you could get stuck with $50k left to finish a $75k job because of your friends and family discount.  This is how you get caught with a half-baked project and no place to live.  No Bueno.  

   If you need help finding a 203k Trained and Experienced Contractor, check out Makeover Renovations at https://www.makeover-homes.com/Main/Borrowers and request some help!



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Give us a call at 463.252.0028 and talk to a pro about how to shop with some assurance knowing you can do a quick Makeover.