FHA cost to cure or not.

[alebrewer]

Hope this helps…

Hope this helps who?

 

[Dale Floyd]

A FHA cost to cure is not a value issue. It's the cost of repairing or replacing a item that's typically under a few thousand dollars and a Escrow Holdback is often done. If it's something large enough to be a valuation issue than it's a mandatory repair or replacement.

This is why say a $500.00 item can be a cost to cure versus a required repair.
We typically could do a escrow holdover account for up to say $5,000 if it wasn't a Health or Safety issue on a FHA.

This prevents a hold up on a closing where a buyer needs to move in but can get the repair done on his own time. Sometimes even an odd size window frame that took a special order. During Covid we did many cost to cures and escrow hold backs.

Absolutely. We are saying the same things. You were from the banking world too, right?