203B Escrow Repair
Learn about 203B escrow repair loans at our Loan Information CenterFHA loan program when less than $5000 of repairs are needed.
ELIGIBLE for a Repair Escrow:
- Repair roofs, gutters and downspouts;
- Repair/Replacement/upgrade of existing HVAC systems;
- Repair/Replacement/upgrade of plumbing and electrical systems;
- Repair/Replacement of flooring;
- Painting, both exterior and interior;
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.;
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens;
- Minor repair to exterior decks, patios, porches;
- Minor basement waterproofing;
- Minor mold remediation;
- Window and door replacements and exterior wall re-siding;
- Other minor repair(s) as indicated by the appraiser as being cosmetic in nature and conform to HUD’s repair escrow requirements
INELIGIBLE for a Repair Escrow:
- Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
- New construction (including room additions);
- Any repair that, according to the appraiser’s report, not cosmetic in nature;
- Repair of structural damage;
- Repair(s) requiring detailed drawings or architectural exhibits;
- Landscaping or similar site amenity improvements;
- Any repair or improvement requiring a work schedule longer than 60 days; or
- Repair/Rehabilitation activities that require more than one (1) final disbursement
- Repair swimming pools;
Repair escrow is not to be used for any repair(s) that would:
- Require more than 1 payment be made to one contractor;
- Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”;
- Require plans or architectural exhibits;
- Require a plan reviewer;
- Require more than 60 days to complete;
- Result in work not starting within 15 days after loan closing; or
- Cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted