With buying a Hud Home, what do they mean when they say ‘eligible for FHA financing w/ repair escrow?
Written By: admin on November 3, 2009
One Comment
The house I am interested in was not in my price range, it was 1,000 at the end of September and now its 5,000…on the website it says this:
‘Eligible for FHA financing with repair escrow of ,620′
what exactly does this mean?
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Tags: Buy HUD Homes, fha, repair escrowTags: fha, repair escrow
FHA financing means that the lender that choose to lend on this property will get a guarantee from a federal agency called Federal Housing Administration (FHA), therefore if the house is ever in foreclosure this government agency would refund the lender the mortgage balance
The repair escrow means that there are or will be funds in escrow to repair any hurt to the property up to a total or $4620.00
FHA will send an inspector (FHA appraiser) to make sure the property repairs have been completed.
I hope this has been of some benefit to you,excellent luck.
"FIGHT ON"