Understanding Insurability Codes & Listing Periods



Since HUD insures the FHA fund, the availability of FHA loans is an important factor. Insurability codes tell you what types of FHA financing are available for the home. FHA financing is available to owner occupants only.  

 The 3 codes are as follows:

IN:  Insurable Properties
Meet minimum FHA property standards.

IE:  Insurable with Escrow are Properties 
Require a repair escrow up to $5000 to meet minimum FHA property standards.  
The escrow amount is determined by the buyer's lender and financed into the loan.

UI:  Uninsurable Properties 
Do not meet minimum FHA property standards and require more than $5000 in repairs.  
These homes can be purchased using 203K rehab financing.  

Listing Periods

W When HUD homes are listed for sale, the total number of days it is for sale is 180.  The property goes through a series of different listing periods that show what type of buyers are allowed to make offers at that time.  A property's insurability code, and whether or not it is in a revitalization area help determine the listing period.  
     The listing periods are as follows: 

Lottery:  Reserved for Non-profits & Government Agencies
All UI properties start in the lottery period (7 days) . The only insured
p properties that start in this period are SFH in a revitalization area. 
A After the lottery period comes the Exclusive Period. 

Exclusive Period: Open to Owner Occupants, Non-Profits & Government Agencies
For insured properties (IN & IE) this is 15 days and for UI properties it is 5 days.
The first 10 days for IN & IE properties is known as the sealed bid period.  
B Bids are held but not opened until the 11th day.  If there is no winning bid after 11 days, bids are opened 
daily. For UI properties, bid are opened on the 6th day.  If the home hasn't sold it enters the extended period.
Extended Period:  Open to All including investors.
Any interested party may bid.

Where to Find HUD Owned Homes
Understanding Insurability Codes & Listing Periods
Making Offers on HUD Homes
Winning the Bid
EMD Requirements
Contract Paperwork
Home Inspection
Contract Extension
Walk-through & Closing


Liz Schuyler
Liz Schuyler
4000 Virginia Beach Blvd #164 Virginia Beach VA 23452