FHA 203(b) Repair Escrow

The FHA 203(b) with Repair Escrow is intended to facilitate uncomplicated rehabilitation to a home being purchased from HUD. To qualify, HUD must agree to allow a Repair Escrow per the purchase contract and the appraisal must be marked as “Insurable with Repair Escrow.” The funds for the repairs and reserve contingency are borrowed and cannot be more than $10,000 combined. The repair items cannot require plans, consultants, engineers and/or architects and should only be for cosmetic purposes.