Every HUD Home Store listing carries a two-letter financing code. It is the single most useful thing on the page for a buyer, because it tells you, before you fall for the kitchen, whether your loan can close on this house. The code comes from the FHA appraisal HUD ordered and describes the home’s condition against FHA’s minimum property standards.
IN: insured
The home meets FHA minimum property standards as it sits. A standard FHA 203(b) loan can close on it with no required repairs, and so can a conventional, VA or CHFA loan, or cash. IN homes are the easiest purchases and draw the most owner-occupant bids. For eligible buyers the $100 down program applies to insured homes when HUD is offering it.
IE: insured with repair escrow
The appraiser found repairs needed to meet FHA standards, but the total is small enough (HUD’s current cap is shown on the listing; historically up to $10,000) that HUD lets an FHA loan close first and fix second. The listing shows the repair escrow amount. Your FHA lender escrows 110 percent of that figure from your loan, you close, the work gets done within the escrow period, and the money is released to the contractor. You still get a normal FHA loan; the only difference is the escrow. If you pay cash or use a non-FHA loan, the escrow does not apply and you handle the repairs on your own schedule.
UI: uninsured
The repairs needed to meet FHA standards are too large for an escrow, or the home has a problem FHA will not insure around. A standard FHA 203(b) loan cannot close on a UI home. Your options are cash, a conventional loan whose lender will accept the condition, a conventional renovation loan such as HomeStyle or CHOICERenovation, or an FHA 203(k) if the home is also flagged 203(k) eligible. UI homes have a much shorter owner-occupant exclusive period (see owner-occupant versus investor bidding periods), so they are where investors concentrate.
UK: uninsured, 203(k) eligible
Same condition problem as UI, but HUD has flagged the home as a candidate for an FHA 203(k) renovation loan. That loan funds the purchase and the repairs together, and the repairs happen after closing under a consultant’s supervision. It is the route that lets a first-time buyer with 3.5 percent down buy a house that needs a roof and a furnace. HUD homes and FHA 203(k) financing in Colorado walks through it.
How the code changes your bid strategy
- IN and IE homes get a long owner-occupant exclusive period and heavy competition. Bid your real number in the first round; a day-one bid and a day-eight bid are opened together.
- UI and UK homes open to investors quickly. If you are an owner-occupant with a renovation loan lined up, the short exclusive window is your advantage: get pre-approved before the listing appears, not after.
- Cash works on every code, closes fastest, and is the only financing that ignores the appraisal. Paying cash for a HUD home covers proof of funds and the 30-day close.
The lender matters more on HUD than anywhere else
Lenders who do not work HUD files regularly misread the codes, quote a 203(b) on a UI home, and find out at underwriting. Mike Oswald at Rate works HUD codes regularly and will tell you on the first call which loan fits which code. You may use any lender you like; the Kenna Real Estate Group receives nothing for the introduction.
Questions people ask next
Can I use a conventional loan on an IN or IE home?
Yes. The codes describe FHA insurability, not a requirement to use FHA. Conventional, VA, CHFA and cash all work on insured homes; on IE homes the repair escrow only applies if you use an FHA loan.
What is the repair escrow cap on an IE home?
HUD sets a maximum for escrow repairs, historically $10,000. The listing shows the exact escrow amount for the home; your FHA lender holds 110 percent of it and releases it as the work is completed after closing.
Does UI mean the house is unsafe?
Not necessarily. UI means the repairs needed to meet FHA minimum property standards are beyond what a repair escrow allows, or the home has a condition FHA will not insure around. Many UI homes are ordinary fixers that close fine with a 203(k), a conventional renovation loan or cash.
Can the financing code change after the home is listed?
It can if HUD orders a new appraisal, usually after a long time on the market or a price review. When that happens the listing is updated and the periods may restart, so check the code again before you bid.
The listing controls. HUD changes its procedures from time to time and every property has its own dates, codes and conditions on HUD Home Store. Where this page and the official listing or current HUD rules differ, the listing and HUD’s current rules control. We check this page regularly; ask us to confirm anything before you rely on it.
Looking at a specific HUD home? Call or text 303-955-4220. A HUD-registered agent answers, reads the listing with you, and the answer is free.
Written and reviewed by
Brian Lee Burke, Colorado HUD home specialist and team leader
Licensed Colorado real estate professional since 2002 · REALTOR® · Team leader and licensed broker of the Kenna Real Estate Group at Keller Williams DTC, a HUD-registered group that regularly bids on HUD homes · Author of The Real Estate Playbook and Mastering Real Estate. Brian’s full HUD biography.
Last reviewed: September 20, 2026 · Sources: HUD Home Store and HUD Handbook 4000.1, CHFA program guidelines, metroDPA program guidelines, Freddie Mac PMMS, and the county programs named on the page.
Lending content reviewed by Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003.
Program facts change. Eligibility varies by buyer and property; lender approval is required; program funding can run out; buyers may use any qualified lender; the Kenna Real Estate Group does not control HUD, CHFA or lender decisions. Verify the current terms with the program and your lender before you rely on them.
Contact: call or text 303-955-4220 or homes@kennarealestate.com. During office hours you reach a live local Kenna real estate professional, not a robot or a national call center. Brokerage: Kenna Real Estate Group at Keller Williams Realty DTC, LLC, 6300 S Syracuse Way, Suite 150, Centennial, CO 80111. Each Keller Williams office is independently owned and operated. The Kenna Real Estate Group is an independent real estate team and is not affiliated with or endorsed by HUD or any government agency; official property information comes from HUD Home Store. Equal Housing Opportunity.
Free guide, PDF
$100 Down: The HUD Home Financing Guide
The $100 down rule, CHFA, HUD paying your closing costs: the stack that gets a buyer in for about $1,000. 14 pages, free.
Why you want it before you bid:
- Which listings qualify for $100 down and how to spot them (the IN and IE codes)
- What you still pay at closing, line by line, with a real example
- How $100 down stacks with CHFA, metroDPA and Good Neighbor Next Door
Find every home available, not just HUD homes
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Opens kennarealestate.com, the Kenna Real Estate Group’s full MLS search. HUD homes only? Use the tiles and the map on this site.
Ask us about HUD homes
Tell us what you are working with and we will tell you honestly whether a HUD home is the way to get there. No cost, no obligation, and nobody sells you anything.
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