Understanding Property Details
HUD properties for sale have codes assigned to them, informing you of the home’s condition. You can easily spot which homes may be move-in ready or which ones need some extra TLC through Property Condition Codes.
Property Condition Codes
IN – Insured Property – All properties listed as “insured” are available for FHA financing. The originating lender is responsible for making the final determination whether the property meets Minimum Property Standards. (203b loans qualify here)
IE – Insured w/ Escrow Repairs – A property must have less than $10,000 in required FHA repairs to be an FHA 203b insurable property. The repair requirement is based off the appraisal ordered by the buyer’s lender. (203b with repair escrow loans)
UI – Uninsured – Properties listed as “uninsured” means that repairs or improvements exceeding $10,000 are required. These properties may qualify for FHA 203k financing, which is the rehabilitation loan program. Buyers may also opt to purchase with conventional financing or cash.
If you want to be an Owner Occupant
- This must be your primary residence for 12 months and you cannot have purchased a HUD home as an owner occupant in the past 24 months.
- If you are a parent buying a home for children, you are an investment buyer!
- Note: falsifying HUD documents is punishable by up to a $250,000 fine and 2 years in prison.