These three codes are offered to help provide information to allow a sellers agent or buyer to assess the type of financing available for a listed property. The simplest thing to remember is that these three codes are showing eligibility for FHA 203 (b) financing. The FHA 203 (B) is a program for repairs less than $5,000 where an escrow is created at closing to complete the repairs.
IN (Insurable)
The property meets the FHA financing requirements and no obvious repairs are needed to insure an FHA loan to a buyer.
IE (Insurable with Escrow)
These properties are eligible for the FHA 203(b) program with needed repairs of less than $5,000 are required to meet Minimum Property Standards for an FHA mortgage. These properties can qualify for FHA Section 203(b) mortgages if the purchaser and lender establish a repair escrow at the closing for the completion of repairs within 90-days of the closing. This is not a gift from HUD. The sales price remains the same and is added to the mortgage. No repairs prior to closing.
UI (Uninsurable)
A property that requires extensive repairs after the closing and is not eligible for FHA mortgage insurance. Properties listed as UNINSURED means that certain repairs and or improvements are required to be eligible for an FHA 203(k) mortgage. The required repairs on most of these properties exceed $5000.00. Purchasers of these properties have the option to purchase as-is with cash or conventional financing. These properties are also eligible for an FHA 203(k) mortgage if the required repairs and or the improvements are completed within 90-days of the closing.
