Understanding Codes IN, IE, UI, F, HOA, LBP

 

IN-Insured. FHA Insurable/FHA Loans. Property meets intent for MPR (Minimum Property Requirements). Property sufficiently good condition for an FHA 203(b) loan. All properties listed as “insured” are eligible for FHA financing.

 

• IE-Insured with Escrow Repairs: FHA Insurable w/ Escrows less than $10000 for MPR (Minimum Property Requirements). FHA 203b loans. Escrow Amount is added to loan balance and could be eligible for FHA 203(b).

Purchasers may qualify for FHA with a repair escrow not to exceed $10,000. The originating (new) lender is responsible for final determination ofMinimum Property Standards and determines eligibility for FHA insurance.

 

IE-Insured with Escrow Repairs: Repair Escrow only applies FHA 203(b) financing

• HUD will not pay the escrow amounts. It is not a gift from HUD.

 

• Escrow amounts will be added to the mortgage, however sales price remains the same.

 

• On the listing you will see the itemized list of the required repairs and the total cost of the repairs. 110%

  of the estimated repair cost will be added to mortgage.

 

• Lender is responsible for repairs and making sure contractor is licensed

 

• No repairs may be done prior to closing

 

Click here to learn more about the 203B and 203K FHA Loan

 

 

UI-Uninsurable: Escrows exceed $10000 for MPR (Minimum Property

Requirements). Cap of $35,000 for repairs. Not eligible for 203 (b). However, it may be eligible for 203K loans.

 

• Escrow amounts will be added to the mortgage, however sales price remains the same.

 

• On the listing you will see the itemized list of the required repairs and the total cost of the repairs. 110%

  of the estimated repair cost will be added to mortgage.

 

• Lender is responsible for repairs and making sure contractor is licensed.

 

• No repairs may be done prior to closing

 

Click here to learn more about the 203K FHA Loan

 

 

Purchasers may also opt to purchase HUD homes with cash, VA or conventional financing. See the individual lender for more details.

 

 

F-Flood. Property is located in an area where coverage under the National Flood Insurance Program may be required in order to obtain a loan.

 

• HOA-Home Owners Association. Property is located within a Homeowner’s Association, Property Owners Association or Condo Association which will most likely require HOA, POA and/or Condo fees /dues and disclosure packet.

 

• LBP-Lead Base Paint: Property was built before 1978 and may contain lead-based paint; an LBP Addendum form must accompany the sales contract.

 

BID PERIODS

 

IN & IE: Exclusive Bid period for 15 Day Exclusive Bid Period for Owner Occupants, Government Agencies and Non-Profit Organizations.

 

Bids opened simultaneously after 10 days. Check www.hudhomestore.com website for bid deadlines. If no offers are accepted, it then opens to a daily bidding.

 

After 15 days: extended bid period open to all bidders, including investors.

 

• UI: 5 Day Owner Occupant Exclusive Bid period for Owner Occupant, Government Agencies and Non-Profit Organizations.

After 5 days, bidding will open to all purchasers on the 6th day on a daily basis, including investors.

 

• GNND (Good Neighbor Next Door) Lottery: 7 day Lottery Bid period for GNND.

• NPO: (First Look: Non Profit Organization): 14 Day per-list Bid period