What are FHA Repair Escrow 203(b) Loans and Where are the Benefits?

guy painting houseNever before has it been so affordable to own a home of your own. In spite of the mortgage crisis and sluggish economy, there are some excellent ways to maximize your funds and realize the dream of home ownership. One program offered by American Financial Resources (AFR) and steered by HUD guidelines is the FHA 203(b) Repair Escrow loan. It is designed to make it easier to buy a home that is being purchased from HUD.

Of course there are certain requirements that must be met before a borrower can qualify for an FHA repair escrow 203(b) loan. First, the property must be appraised and deemed “insurable with repair escrows.” Also, the borrowed funds must not exceed $5,000. If the repairs are more than cosmetic or so great that they require architects, consultants or engineers, then the property is ineligible.

Here are a few examples of repairs that are eligible for this program:

Basement waterproofing

Painting-Inside and exterior

Roof repair, including gutters and downspouts

Mold remediation

New appliances

Porch, patio, or deck repair

Replacement doors and windows

Here are examples of ineligible repairs through FHA 203(b) Repair Escrow:

Structural damage

Room additions

Swimming pool repair

Anything that takes longer than 60 days


Projects that require an architect

Have Additional Questions (3 Ways to Contact Us)

  • Give one of our mortgage consultants a call toll-free at 800-634-866
  • Complete the Rate Quote Form on this page and one of our FHA 203b loan specialists will contact you to discuss your situation.
  • Get started online in just a few easy steps.

You might also find these posts interesting:
Easier Access to Home Equity Loans
Increase in Home Improvement Scams


Like this post?

Sign up to get the latest mortgage info, real estate stats and other useful topics delivered to your inbox.


  1. Hello, i think that i saw you visited my site thus i came to “return the favor”. I am attempting to find things to enhance my site! I suppose its ok to use a few of your ideas!!

  2. cedar finance.com says:

    Awesome post.

Speak Your Mind

+ 8 = 9