-For a list of authorized HUD Agents who sign contracts, data can be found at HUD.gov Click Here
-Appraisal on HUD Homes. Utilities are not required to be active. Appraiser should use the Property Condition Report (PCR) Have appraiser refer to Appendix “A” for further clarification. Appraiser relies on the PCR per Appendix A. Home inspections can be completed by the buyer. Once the home inspector specifies the issue, the underwriter may rely on that and request escrow based on bid by licensed contractor or inspector estimate.
-FHA 203(k) Streamline is the absolute best way to finance HUD Homes.
REPAIR ESCROW 203(b) Repair Escrow
-A buyer using FHA can finance HUD’s escrow repairs into loan. HUD Homes listed as Insured w/Escrow (IE) Click Here For HUD Documentation Regarding (IE)
-HUD is exempt from signing the FHA Amendatory Clause per HUD 4155.2.6.A.5.d
-HUD has increased the maximum escrow amount for Insured with Escrow (IE) properties from $5,000 to $10,000. Appraisers will now provide escrow amounts in accordance with the new guidelines and this will be reflected in the listing. These properties may have an escrow amount of up to $10,000 and still be considered IE. If lenders question this change, please refer them to the Federal Register, Final Rule 24 CFR part 291.
-Non Occupant Co-Borrowers are allowed to purchase HUD Homes if the buyer is using FHA financing.
Important Mortgagee Letters Regarding HUD Homes:
-Mortgagee Letters 2012-18 B, 2009-46 B and 2009-19 HUD REO’s are still eligible for FHA financing even though condo development is not on Approved Condo List. FHA will now allow lenders to determine project eligibility, review project documentation and certify to compliance of section 203(b) of the NHA and 24CFR 203 of HUD’s Regulations. Click Here