FHA/HUD Escrow ??

[loumatt]

Hi all.

Can someone give some info on how a HUD/FHA escrow works.

The house in question is missing floor covering and there has been a escrowed amount for the purpose of bringing the flooring up to FHA standards (within 90 days from what I've read and understand).

Can I use this money to just buy carpet and padding and install it myself to try to keep cost down in this competitive envirorment or will I be regulated by who I buy from and who does the install by HUD or FHA?

I'm trying to avoid any '203' type loans to try to keep cost down and have a little more control over the labor/material aspect of the project.

Also, would the house being listed as having FHA financing be disqualified from FHA being that it's without flooring, and in that case why is there an escrowed amount in the first place?

BTW, I have spent hours on the comp and phone with FHA & HUD trying to find a clear cut answer but it seems I go around in circles or am refered to trying to make scense out of HUDS confusing handbook.


Any help is greatly appreciated. THANKS FOR YOUR TIME.

[troubles74]

I don't think that there is any reason why you can't do it yourself.My husband and I did.We purchased a hud home about 20 years ago and it needed some work.

We needed windows throughout the house and heating and air installed.Well my husband was a carpenter and hes best friend was a contractor.Our friend priced the job for us and we turned that in.We bought the parts and did the repairs ourselves and pocketed the extra money that we saved by doing it ourselves.

We used the money to put on a new roof,although we did have to let them come in and check out the repairs and make sure that they were done of couse.

[loumatt]

Hi Troubles 74.

That sounds promising so far.
I'm just not too sure about rules and regulations concerning how this money that you are paying for is realeased and what conditions have to be met in order for it to be.

You would think alls it would take is a quick phone call or email but that hasn't been the case.

Thank you very much for sharing your experiences regarding this.