General Mortgage Knowledge · 20% of the SAFE exammedium
Correct answer: A HUD-approved 203(k) consultant must be used to oversee the project
For a Standard (Full) 203(k) loan, HUD requires the use of a 203(k) Consultant — a HUD-approved housing rehabilitation specialist who reviews the project, prepares the work write-up, and inspects work progress. This is mandatory for the Standard 203(k). The minimum repair threshold for the Standard 203(k) is $5,000, not $75,000. Borrowers cannot act as their own general contractors under standard rules. The property must be 1-to-4 unit residential, but it does not have to be multi-unit.
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