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By Voices Member | in

Do you want to buy or sell a property in need of repairs or renovations?

Especially with the high number of foreclosure properties for sale, programs allowing for the escrow of repairs after closing is important to have access to.  We have the following options for escrowing for renovations and improvements:

  • Escrow repairs up to $5000 or 10% of the loan amount, whichever is less, on FHA loans - only repairs mentioned on the appraisal as necessary repairs for the property to meet HUD minimum standards are allowed to be escrowed.
  • Escrow repairs up to $10,000 or 10% of the loan amount, whichever is less, on USDA loans - only repairs mentioned on the appraisal as necessary repairs for the property to meet HUD minimum standards are allowed to be escrowed.
  • FHA 203k which will lend up to 96.5% of the purchase price and total improvements to be made on primary residences
  • Fannie Mae Homestyle Renovation loan will lend up to 95% of the purchase price and total improvements for primary residences.  Homestyle Renovation may be used for 2nd home and investment property purchases as well
  • Homepath Renovation can be used to purchase Fannie Mae foreclosures and borrow up to $35,000 in improvements.  Borrowers can borrow up to 95% on a primary residence, 90% on 2nd homes, and 75% on investment properties

Click here for more information on the Escrow Holdback process

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