Des Moines FHA Loan Rates, Closing Costs & Stats

DES MOINES-WEST DES MOINES, IA

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Des Moines's 107 lenders originated 1,726 FHA loans during 2023. The total origination value was $407,460,000, with an average FHA loan value of $236,072.

Des Moines FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Des Moines averaged 6.63% for the week of 2024-05-24, compared to the national average (all FHA variants) of 6.746% for the same period.

Des Moines's average FHA mortgage closing costs are $6,459.

The average rate for the prior week (2024-05-17) was 6.53% and one month ago for the week of 2024-04-19, the average rate was 6.85%.

The average rate one year ago was 6.27%.

For refis of the same type during the week of 2024-05-24, the average rate was 6.36%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Des Moines FHA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Des Moines level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
HOMESERVICES LENDING, LLC 102 6.51% $8,804
QUICKEN LOANS, LLC 101 6.26% $9,833
DHI MORTGAGE COMPANY, LTD. 91 5.38% $9,147
Lincoln Savings Bank 81 6.26% $7,524
GREENSTATE CREDIT UNION 78 6.12% $6,332
BROKER SOLUTIONS, INC. 72 6.83% $9,005
Fortress Bank 70 6.55% $7,908
AMERICAN PACIFIC MORTGAGE CORPORATION 67 6.81% $10,491
Ixonia Bank 57 6.48% $10,471
UNITED WHOLESALE MORTGAGE, LLC 54 6.26% $10,654
The Central Trust Bank 44 6.53% $8,599
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 42 6.88% $8,866
GERSHMAN INVESTMENT CORP. 39 6.56% $7,498
GUILD MORTGAGE COMPANY 38 6.63% $8,898
COMPASS MORTGAGE, INC. 35 6.56% $9,209
Barrington Bank & Trust Company, N.A. 34 6.32% $7,792
PENNYMAC LOAN SERVICES, LLC 32 6.25% $10,260
FREEDOM MORTGAGE CORPORATION 31 6.75% $13,596
LAND HOME FINANCIAL SERVICES, INC. 30 6.52% $8,459
NEWREZ LLC 28 6.26% $7,925
HOMESIDE FINANCIAL, LLC 28 6.77% $9,409
PLAZA HOME MORTGAGE, INC. 26 6.56% $8,413
Chickasaw Community Bank 26 6.92% $8,360
FRONTIER FINANCIAL, INC. 26 6.70% $6,110
U.S. Bank 20 6.52% $7,037
Plains Commerce Bank 19 6.38% $7,032
AMERISAVE MORTGAGE CORPORATION 18 6.03% $13,270
Mr. Cooper ( Nationstar Mortgage ) 18 6.12% $9,647
GUARANTEED RATE, INC. 18 6.28% $10,988
LOANDEPOT.COM, LLC 17 6.25% $11,651
CMG MORTGAGE, INC. 15 6.53% $9,804
AmeriHome Mortgage Company, LLC 15 6.49% $11,002
Flagstar Bank, FSB 13 6.60% $7,624
MUTUAL OF OMAHA MORTGAGE, INC. 12 6.41% $15,969
CROSSCOUNTRY MORTGAGE, LLC 12 6.41% $10,645
V.I.P. MORTGAGE, INC. 11 6.42% $7,819
CARDINAL FINANCIAL 8 7.13% $9,452
Carrington Mortgage Services, LLC 8 6.44% $10,064
Regions Bank 8 6.30% $8,070
AMERICAN FINANCIAL NETWORK, INC. 7 7.27% $7,695
LAKEVIEW LOAN SERVICING, LLC 7 5.79% $11,505
ENVOY MORTGAGE, LTD 7 6.82% $9,888
Servion, Inc. 6 7.00% $6,480
BMO Harris Bank 6 6.31% $10,039
DAS Acquisition Company, LLC 6 6.94% $8,201
RESIDENTIAL MORTGAGE NETWORK, INC. 6 6.42% $5,904
Great Southern Bank 5 6.80% $5,434
Wells Fargo Bank 5 6.88% $8,373
IOWA BANKERS MORTGAGE CORPORATION 5 6.65% $8,648
Northwest Bank 5 6.43% $7,873
Summit Mortgage Corporation 5 7.05% $7,788
GREATER IOWA CREDIT UNION 4 7.13% $6,935
UNION HOME MORTGAGE CORP. 4 6.47% $12,730
EVERETT FINANCIAL, INC. 4 6.94% $9,844
ENDEAVOR CAPITAL, LLC. 4 7.18% $12,320
EMM LOANS LLC 4 6.13% $13,215
CITY FIRST MORTGAGE SERVICES, L.L.C. 4 6.59% $13,307
POLARIS HOME FUNDING CORP. 3 7.46% $16,147
HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.79% $6,943
MID AMERICA MORTGAGE, INC. 3 6.75% $6,737
LIBERTY HOME MORTGAGE CORPORATION 3 7.08% $8,904
AMERICAN FINANCING CORPORATION 3 6.58% $11,992
Mortgage Research Center, LLC 3 7.33% $3,759
PLANET HOME LENDING, LLC 3 5.00% $7,814
VANDERBILT MORTGAGE AND FINANCE, INC. 3 6.29% $16,648
STOCKTON MORTGAGE CORPORATION 2 7.69% $8,717
Bankers Trust Company 2 6.19% $6,298
Bank of America 2 6.06% $3,169
BETTER MORTGAGE CORPORATION 2 6.94% $7,104
CHURCHILL MORTGAGE CORPORATION 2 6.63% $10,674
Encompass Lending Group, LP 2 7.50% $10,927
First Savings Bank 2 6.13% $10,643
HOMESTAR FINANCIAL CORPORATION 2 6.50% $9,752
MOVEMENT MORTGAGE, LLC 2 7.38% $14,013
NFM, INC. 2 6.63% $8,999
Paramount Residential Mortgage Group, Inc. 2 7.44% $11,180
PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.63% $13,359
TOP FLITE FINANCIAL, INC. 2 6.94% $8,959
VILLAGE CAPITAL MORTGAGE 2 6.94% $3,083
PHH Mortgage Corporation 1 5.63% $14,525
North American Savings Bank, F.S.B. 1 6.25% $11,853
NETWORK CAPITAL FUNDING CORPORATION 1 5.75% $4,079
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.13% $12,686
Lakeview Community Capital, LLC 1 6.25% $13,998
PREMIA MORTGAGE, LLC 1 5.75% $8,058
Bank of England 1 6.75% $15,605
JPMorgan Chase Bank 1 7.75% $4,198
Gateway First Bank 1 6.88% $8,043
FLAT BRANCH MORTGAGE, INC. 1 6.63% $7,817
RUOFF MORTGAGE COMPANY, INC. 1 7.25% $4,091
S1L, Inc. 1 5.75% $10,326
Flanagan State Bank 1 6.63% $8,031
Sierra Pacific Mortgage Company, Inc. 1 6.75% $7,102
AMCAP MORTGAGE, LTD. 1 6.50% $10,965
First International Bank & Trust 1 5.75% $8,467
SUN WEST MORTGAGE COMPANY, INC. 1 7.13% $8,030
FIRST COMMUNITY MORTGAGE, INC. 1 7.25% $11,371
American Mortgage & Equity Consultants, Inc. 1 6.25% $18,637
TOWNE MORTGAGE COMPANY 1 6.25% $19,467
FIDELITY BANK 1 6.63% $13,538
CASTLE & COOKE MORTGAGE, LLC 1 6.25% $13,384
CALIBER HOME LOANS, INC. 1 7.25% $6,529
Bell Bank 1 6.25% $6,648
ON Q FINANCIAL, INC. 1 6.25% $6,096
OPEN MORTGAGE, LLC 1 6.75% $15,501
ZILLOW HOME LOANS, LLC 1 6.75% $7,837
Northpointe Bank 1 6.75% $13,087

The top Des Moines FHA lender as defined by loan originations is HOMESERVICES LENDING, LLC, with 102 FHA loans originated. Their average total fees are $8,804, which is $1,029 lower than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Des Moines FHA lenders (with over 10 loans originated) are FRONTIER FINANCIAL, INC. ($6,110), GREENSTATE CREDIT UNION ($6,332), Plains Commerce Bank ($7,032), U.S. Bank ($7,037) and GERSHMAN INVESTMENT CORP. ($7,498).

The lowest rate Des Moines FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.38%), AMERISAVE MORTGAGE CORPORATION (6.03%), Mr. Cooper ( Nationstar Mortgage ) (6.12%), GREENSTATE CREDIT UNION (6.12%) and LOANDEPOT.COM, LLC (6.25%).

Des Moines FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
DES MOINES-WEST DES MOINES, IA DALLAS 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA GUTHRIE 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA JASPER 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA MADISON 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA POLK 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA WARREN 2022 $420,680 $538,650 $651,050 $809,150
DES MOINES-WEST DES MOINES, IA DALLAS 2023 $472,030 $604,400 $730,525 $907,900
DES MOINES-WEST DES MOINES, IA GUTHRIE 2023 $472,030 $604,400 $730,525 $907,900
DES MOINES-WEST DES MOINES, IA JASPER 2023 $472,030 $604,400 $730,525 $907,900
DES MOINES-WEST DES MOINES, IA MADISON 2023 $472,030 $604,400 $730,525 $907,900
DES MOINES-WEST DES MOINES, IA POLK 2023 $472,030 $604,400 $730,525 $907,900
DES MOINES-WEST DES MOINES, IA WARREN 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Des Moines (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $281,250 (6.0%) $296,297 (-0.3%) 1.04 2,919
2018-02-01 $289,178 (5.7%) $306,338 (-0.4%) 1.05 2,845
2018-03-01 $289,500 (5.1%) $310,723 (0.0%) 1.02 2,833
2018-04-01 $292,416 (3.7%) $317,787 (0.0%) 0.99 2,836
2018-05-01 $291,225 (2.0%) $321,301 (0.7%) 0.97 2,906
2018-06-01 $289,900 (3.6%) $317,875 (2.0%) 0.97 3,149
2018-07-01 $289,900 (5.3%) $316,746 (3.0%) 0.97 3,261
2018-08-01 $283,950 (5.2%) $313,014 (4.0%) 0.95 3,396
2018-09-01 $279,975 (3.7%) $308,391 (4.5%) 0.94 3,576
2018-10-01 $281,359 (3.2%) $308,992 (5.6%) 0.95 3,554
2018-11-01 $281,118 (2.2%) $307,995 (5.1%) 0.95 3,506
2018-12-01 $279,900 (1.1%) $303,759 (3.3%) 0.97 3,320
2019-01-01 $283,235 (0.7%) $306,573 (3.5%) 0.98 3,163
2019-02-01 $287,400 (-0.6%) $310,791 (1.5%) 0.97 3,073
2019-03-01 $288,914 (-0.2%) $314,421 (1.2%) 0.94 3,006
2019-04-01 $288,814 (-1.2%) $317,544 (-0.1%) 0.92 3,014
2019-05-01 $283,200 (-2.8%) $318,326 (-0.9%) 0.89 3,142
2019-06-01 $279,900 (-3.5%) $317,088 (-0.3%) 0.87 3,287
2019-07-01 $276,750 (-4.5%) $314,608 (-0.7%) 0.87 3,408
2019-08-01 $271,427 (-4.4%) $310,678 (-0.8%) 0.86 3,535
2019-09-01 $263,818 (-5.8%) $303,604 (-1.6%) 0.84 3,668
2019-10-01 $259,545 (-7.8%) $299,315 (-3.1%) 0.84 3,733
2019-11-01 $255,000 (-9.3%) $296,007 (-3.9%) 0.84 3,503
2019-12-01 $255,000 (-8.9%) $294,438 (-3.1%) 0.85 3,320
2020-01-01 $258,900 (-8.6%) $294,677 (-3.9%) 0.87 3,148
2020-02-01 $264,900 (-7.8%) $301,303 (-3.1%) 0.87 3,034
2020-03-01 $268,305 (-7.1%) $307,230 (-2.3%) 0.84 3,032
2020-04-01 $268,302 (-7.1%) $306,904 (-3.4%) 0.84 3,073
2020-05-01 $274,500 (-3.1%) $315,196 (-1.0%) 0.83 2,887
2020-06-01 $277,643 (-0.8%) $324,120 (2.2%) 0.82 2,624
2020-07-01 $274,763 (-0.7%) $325,272 (3.4%) 0.80 2,472
2020-08-01 $272,760 (0.5%) $321,963 (3.6%) 0.78 2,435
2020-09-01 $270,979 (2.7%) $317,172 (4.5%) 0.78 2,366
2020-10-01 $270,096 (4.1%) $315,795 (5.5%) 0.77 2,365
2020-11-01 $269,950 (5.9%) $313,238 (5.8%) 0.79 2,311
2020-12-01 $272,450 (6.8%) $316,629 (7.5%) 0.81 2,112
2021-01-01 $275,000 (6.2%) $324,924 (10.3%) 0.82 1,811
2021-02-01 $280,750 (6.0%) $332,447 (10.3%) 0.82 1,652
2021-03-01 $284,950 (6.2%) $337,577 (9.9%) 0.81 1,508
2021-04-01 $298,777 (11.4%) $350,707 (14.3%) 0.81 1,450
2021-05-01 $299,450 (9.1%) $357,764 (13.5%) 0.80 1,456
2021-06-01 $302,400 (8.9%) $356,851 (10.1%) 0.80 1,563
2021-07-01 $304,900 (11.0%) $350,167 (7.7%) 0.80 1,601
2021-08-01 $301,991 (10.7%) $354,250 (10.0%) 0.81 1,754
2021-09-01 $302,123 (11.5%) $356,685 (12.5%) 0.81 1,786
2021-10-01 $303,275 (12.3%) $355,552 (12.6%) 0.81 1,807
2021-11-01 $308,851 (14.4%) $357,397 (14.1%) 0.83 1,816
2021-12-01 $314,140 (15.3%) $354,893 (12.1%) 0.85 1,725
2022-01-01 $327,183 (19.0%) $365,520 (12.5%) 0.88 1,466
2022-02-01 $349,900 (24.6%) $387,334 (16.5%) 0.91 1,295
2022-03-01 $351,450 (23.3%) $391,829 (16.1%) 0.88 1,302
2022-04-01 $359,900 (20.5%) $398,719 (13.7%) 0.86 1,346
2022-05-01 $355,256 (18.6%) $402,431 (12.5%) 0.81 1,530
2022-06-01 $357,123 (18.1%) $407,087 (14.1%) 0.80 1,692
2022-07-01 $350,100 (14.8%) $401,042 (14.5%) 0.79 1,996
2022-08-01 $351,000 (16.2%) $405,725 (14.5%) 0.81 2,098
2022-09-01 $357,025 (18.2%) $409,243 (14.7%) 0.83 2,217
2022-10-01 $350,000 (15.4%) $403,980 (13.6%) 0.82 2,432
2022-11-01 $349,900 (13.3%) $398,805 (11.6%) 0.84 2,519
2022-12-01 $349,000 (11.1%) $400,955 (13.0%) 0.86 2,321
2023-01-01 $357,450 (9.3%) $407,763 (11.6%) 0.89 2,115
2023-02-01 $369,945 (5.7%) $420,672 (8.6%) 0.89 1,965
2023-03-01 $369,950 (5.3%) $425,373 (8.6%) 0.87 1,971
2023-04-01 $374,900 (4.2%) $432,892 (8.6%) 0.87 1,922
2023-05-01 $375,000 (5.6%) $444,501 (10.5%) 0.85 1,937
2023-06-01 $374,990 (5.0%) $449,446 (10.4%) 0.84 2,090
2023-07-01 $374,900 (7.1%) $449,220 (12.0%) 0.85 2,198
2023-08-01 $369,995 (5.4%) $441,557 (8.8%) 0.85 2,358
2023-09-01 $369,900 (3.6%) $440,075 (7.5%) 0.86 2,383
2023-10-01 $365,495 (4.4%) $436,716 (8.1%) 0.86 2,554
2023-11-01 $359,900 (2.9%) $426,797 (7.0%) 0.86 2,580
2023-12-01 $357,990 (2.6%) $423,676 (5.7%) 0.87 2,414
2024-01-01 $363,245 (1.6%) $429,964 (5.4%) 0.89 2,157
2024-02-01 $364,950 (-1.4%) $437,850 (4.1%) 0.88 2,062
2024-03-01 $368,000 (-0.5%) $439,472 (3.3%) 0.87 2,221
2024-04-01 $375,698 (0.2%) $449,610 (3.9%) 0.87 2,347
Des Moines's median listing price for 2024-04-01 was $375,698, a difference of $798 (0.2%) versus the prior year and $7,698 versus the prior month.

Des Moines's median listing price comes in at 87% of the national average.

Des Moines's average listing price for 2024-04-01 was $449,610, a difference of $16,718 (3.9%) versus the prior year and $10,138 versus the prior month.

For the 2024-04-01 period, Des Moines had 2,347 MLS listings, a difference of 126 listings (6%) versus the prior month and 425 listings (22%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Des Moines (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 93 days 1,619 sqft
2018-02-01 88 days 1,627 sqft
2018-03-01 73 days 1,630 sqft
2018-04-01 66 days 1,634 sqft
2018-05-01 59 days 1,642 sqft
2018-06-01 57 days 1,633 sqft
2018-07-01 57 days 1,632 sqft
2018-08-01 61 days 1,620 sqft
2018-09-01 64 days 1,610 sqft
2018-10-01 68 days 1,608 sqft
2018-11-01 77 days 1,607 sqft
2018-12-01 87 days 1,596 sqft
2019-01-01 91 days 1,589 sqft
2019-02-01 95 days 1,596 sqft
2019-03-01 83 days 1,599 sqft
2019-04-01 64 days 1,602 sqft
2019-05-01 52 days 1,606 sqft
2019-06-01 53 days 1,609 sqft
2019-07-01 59 days 1,599 sqft
2019-08-01 60 days 1,586 sqft
2019-09-01 63 days 1,568 sqft
2019-10-01 64 days 1,556 sqft
2019-11-01 65 days 1,544 sqft
2019-12-01 74 days 1,537 sqft
2020-01-01 82 days 1,528 sqft
2020-02-01 86 days 1,546 sqft
2020-03-01 67 days 1,563 sqft
2020-04-01 62 days 1,557 sqft
2020-05-01 61 days 1,579 sqft
2020-06-01 62 days 1,596 sqft
2020-07-01 58 days 1,595 sqft
2020-08-01 56 days 1,575 sqft
2020-09-01 60 days 1,552 sqft
2020-10-01 59 days 1,532 sqft
2020-11-01 64 days 1,519 sqft
2020-12-01 71 days 1,516 sqft
2021-01-01 78 days 1,512 sqft
2021-02-01 74 days 1,510 sqft
2021-03-01 57 days 1,515 sqft
2021-04-01 49 days 1,518 sqft
2021-05-01 43 days 1,518 sqft
2021-06-01 50 days 1,522 sqft
2021-07-01 51 days 1,514 sqft
2021-08-01 52 days 1,512 sqft
2021-09-01 51 days 1,503 sqft
2021-10-01 54 days 1,498 sqft
2021-11-01 58 days 1,494 sqft
2021-12-01 62 days 1,494 sqft
2022-01-01 81 days 1,501 sqft
2022-02-01 73 days 1,511 sqft
2022-03-01 49 days 1,514 sqft
2022-04-01 46 days 1,534 sqft
2022-05-01 44 days 1,534 sqft
2022-06-01 46 days 1,545 sqft
2022-07-01 46 days 1,540 sqft
2022-08-01 52 days 1,554 sqft
2022-09-01 56 days 1,552 sqft
2022-10-01 57 days 1,540 sqft
2022-11-01 60 days 1,550 sqft
2022-12-01 73 days 1,550 sqft
2023-01-01 89 days 1,552 sqft
2023-02-01 93 days 1,562 sqft
2023-03-01 72 days 1,566 sqft
2023-04-01 65 days 1,566 sqft
2023-05-01 58 days 1,598 sqft
2023-06-01 51 days 1,601 sqft
2023-07-01 53 days 1,605 sqft
2023-08-01 57 days 1,601 sqft
2023-09-01 61 days 1,599 sqft
2023-10-01 61 days 1,586 sqft
2023-11-01 61 days 1,567 sqft
2023-12-01 71 days 1,564 sqft
2024-01-01 81 days 1,564 sqft
2024-02-01 76 days 1,566 sqft
2024-03-01 52 days 1,558 sqft
2024-04-01 46 days 1,580 sqft
Des Moines's median listing age (time on market) for 2024-04-01 was 46 days. This is -29% shorter than the same period one year ago.

Des Moines's median square footage for active listings during the 2024-04-01 period was 1,580 sqft. One year prior, the average listing was 1,566 sqft.

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).