Borrower owns a property which will require many repairs to meet FHA requirements. The borrower does not have any money for repairs. Can a Repair Set-Aside be established?
A repair set-aside may be established for minor repairs on a HECM Refinance if there is adequate equity. However, all health and safety items must be repaired prior to close as they cannot be included in a repair set-aside. You might check to see if there are some community groups or family willing to help with the required repairs. The HECM appraisal will identify all of the repairs required to be completed for the property to be in compliance with FHA property standards.