HUD Homes listed as FHA Uninsured but 203k eligible in Michigan?
I'm looking at buying a HUD home. Obviously. No one seems to have any answers about how to go about these things. Not the real estate agent, not the broker, and not the bank. The house I'm currently looking at is listed as FHA UI or Uninsured. It is also listed as 203K eligible. According to the website if it is 203K eligible it should be listed as FHA IK. But its not. The listing page seems to be contradicting itself. Anyone have a clue?
That makes sense Monica. So presumably I wouldn't have any problem bidding on this house with a FHA 203K loan listed on the bid.
Also, do I get bids from a contractor after I have a purchase agreement, or am I supposed to get estimates before I put in a bid? What happens if the cost of repairs is more than I can afford in a loan but we don't find out until after I have a purchase agreement?
- 10 years agoBest Answer
they are showing he current assurabilty, i havent seen hud use ik for awhile all they have been listing is ether inssured or ui I think with the amount of homes they are dealing with right now they are trying to keep it simple for the people they have hired to input all these homesSource(s): 20 years as real estate broker
- Anonymous4 years ago
IE – Insurable with Escrow – 203(b) Repair Escrow Properties listed IE are eligible for FHA financing with repairs to be completed by the purchaser after the close of escrow. These repairs must be Minimum Property Standard (MPS) Repairs totaling less than $5,000. MPS Categories include; roof, structure, and mechanical systems, such as plumbing, electric, and heating. A listing posted inside the property will indicate actual repair amounts. The cost for the repairs is not paid by HUD; however, the buyer may finance the repair escrow amount in their mortgage. The lender is responsible for inspections of the repairs and authorizing release of funds. On the purchase agreement the repair escrow amount is not deducted from the Net to HUD or added to the purchase price on line 3. The repair escrow amount should only show on line 4. REPAIR ESCROW ONLY APPLIES TO FHA FINANCING – not cash or conventional transactions.