203B Escrow Repair

Loan Information Center

FHA 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

Please consult with Volunteer Home Mortgage, Inc. for more details!

Volunteer Home Mortgage

1033 W. Broadway Ave
Maryville, TN 37801