Is it a 203K refinance or is it a purchase? That may make a difference. You should also know if the loan is a streamline 203K, because certain kinds of improvements are not allowed under the streamline program. Example: Landscaping, a fence, repair of "structural" damage.
There are several investors that offer 203K renovation loans, both the regular program that requires a consultant and the streamline 203K that does not require a consultant and is limited to $35,000 including any hold back (usually 10%). Add up to $2,000 if the repairs include qualifying energy efficient improvements.
You can know the HUD mortgagee letters and manual sections that apply to the 203K programs backward and forward, but that will only tell you the base HUD requirements.
The investors have discovered that a high percentage of renovation loans end up in legal entanglements along the way, for various reasons. They have developed supplemental standards, some of which affect the appraisal requirements. If you know the investor that will be used, it would be best to see if they have specific appraisal standards accessible on their web site.
For purchases, many investors use the purchase price as an "as is" value for their calculations. However, for a refinance transaction under the 203K program, they generally want an as is appraisal and an appraised value subject to plans and specs. The investor may have the appraiser combine the 2 assignments into one report, per HUD, but some investor may want separate reports for each value.
I would suggest that an appraiser performing these type of assignments, read up on them a bit. Hopefully, the LO will have made sure the appraisal request included necessary guidance, but don't bet on it!
Suggestion: incorporate the consultant's report into the appraisal report, if applicable. Same thing with the bids.
Good luck
