Financing in Cincinnati>Question Details

Erika, Home Buyer in Cincinnati, OH

FHA 203B with repair escrow for non-HUD REO?

Asked by Erika, Cincinnati, OH Wed Aug 8, 2012

We are in the process of trying to purchase an REO property that is not through HUD. Do FHA 203(b) loans allow a repair escrow if the house is not being sold through HUD?

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You need to check with the individual lender. They can establish repair escrow requirements, but generally, the answer is no.
Web Reference: http://usloans.com
2 votes Thank Flag Link Wed Aug 8, 2012
Thanks, guys. This thread is pretty old. We purchased our house quite some time ago, but I do appreciate the feedback!
0 votes Thank Flag Link Sat Jun 1, 2013
Yes. Call a major lender, i.e. Wells Fargo is one of many, to get details/requirements.
0 votes Thank Flag Link Sat Jun 1, 2013
You might want to explore a straight conventional loan
0 votes Thank Flag Link Sat Jun 1, 2013
Yes, they do. You can have a repair escrow with any home. However, if the repair amount exceeds $5,000 you must do a 203K loan.
0 votes Thank Flag Link Wed Aug 8, 2012
Erika, That is a question to ask the lender that you plan on using for your loan. I have heard of some lenders that will permit repair escrows when it does not cause health or safety issues.
0 votes Thank Flag Link Wed Aug 8, 2012
Erika - 203b and 203k are very different. I have a lender who does both and I think the 203b is much easier than 203k.. In fact, that is how I met this lender. Call or email me and I will pass on her info to you. She is awesome. 513-518-4047 nadjacrawford@yahoo.com
0 votes Thank Flag Link Wed Aug 8, 2012
It is hard to get a 203b done with a repair escrow. Try using a FHA 203k I have done them many times and seem to be the easiest way to go on a property that needs repairs.
0 votes Thank Flag Link Wed Aug 8, 2012
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