This program is for FHA-insured financing on HUD Real Estate Owned Property with a repair escrow. The properties will usually have no more than $5,000 of repairs to meet FHA’s minimum repair requirement(s). FHA guidelines will apply but are superseded by the guidelines below.
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| Credit score: | 640 minimum |
| Property type: | 1-4 Units, Condo, PUD |
| Occupancy: | Must be primary residence |
| Down Payment: | 3.5% minimum |
| Loan to Value: | 96.5% Max. CLTV: 96.5% |
| Gift Funds | 100% of closing funds allowed |
| Closing cost: | Seller and/or lender can pay up to 6% |
| Debt Ratio: | 41% with compensating factors up to 45/56% |
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Additional Notes:
- Appraisal provided by HUD for FHA financing
- Only for HUD Owned properties only
- Appraiser-identified repairs must be completed
- Up to $5,000 may be added to buyer’s loan amount
- Repairs above $5,000 should use 203K financing
- Repair requirements must be completed in 30 days
- Compensation on hold until repairs are completed
- 620 score available with 20% down
- Repair funds must be held in escrow account
- First time buyer not required. Must be primary residence
This page contains program highlights only. See sidebar links for further information and details.