Tallahassee FHA Loan Rates, Closing Costs & Stats

TALLAHASSEE, FL

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.

Tallahassee's 114 lenders originated 1,105 FHA loans during 2023. The total origination value was $254,605,000, with an average FHA loan value of $230,412.

Tallahassee FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Tallahassee averaged 6.73% for the week of 2024-05-10, compared to the national average (all FHA variants) of 6.786% for the same period.

Tallahassee's average FHA mortgage closing costs are $8,001.

The average rate for the prior week (2024-05-03) was 7.02% and one month ago for the week of 2024-04-05, the average rate was 6.81%.

The average rate one year ago was 6.12%.

For refis of the same type during the week of 2024-05-10, the average rate was 6.94%.

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

Tallahassee 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 Tallahassee level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 101 6.29% $10,832
LOANDEPOT.COM, LLC 78 6.52% $11,325
MOVEMENT MORTGAGE, LLC 77 6.58% $10,344
University Bank 72 6.29% $10,935
UNITED WHOLESALE MORTGAGE, LLC 64 6.41% $13,071
DELMAR FINANCIAL COMPANY 43 6.64% $10,188
Ameris Bank 38 6.58% $9,230
Capital City Home Loans, LLC 33 6.73% $10,104
DHI MORTGAGE COMPANY, LTD. 29 5.55% $8,868
UNION HOME MORTGAGE CORP. 17 6.94% $10,800
Centennial Bank 17 6.49% $10,656
BAY CAPITAL MORTGAGE CORPORATION 15 6.21% $11,960
AMERICAN FINANCIAL NETWORK, INC. 14 6.81% $10,072
ServisFirst Bank 13 6.52% $9,614
Carrington Mortgage Services, LLC 13 6.17% $12,390
Mr. Cooper ( Nationstar Mortgage ) 11 6.31% $12,569
VAN DYK MORTGAGE CORPORATION 10 6.75% $7,865
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 10 7.39% $10,885
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 10 6.25% $11,294
CARDINAL FINANCIAL 10 6.20% $13,752
FIRST COMMUNITY MORTGAGE, INC. 9 7.06% $10,547
PENNYMAC LOAN SERVICES, LLC 9 6.08% $12,582
BROKER SOLUTIONS, INC. 9 6.51% $9,920
CROSSCOUNTRY MORTGAGE, LLC 8 6.33% $11,557
FREEDOM MORTGAGE CORPORATION 8 6.86% $13,318
Equity Prime Mortgage LLC 7 7.05% $11,986
AMERISAVE MORTGAGE CORPORATION 7 6.07% $12,465
Regions Bank 7 6.48% $8,290
TruHome Solutions, LLC 6 6.60% $9,855
Paramount Residential Mortgage Group, Inc. 6 7.33% $11,139
GMFS LLC 6 6.56% $9,180
Waterstone Mortgage Corporation 6 7.35% $10,862
Truist 5 6.35% $9,181
Flagstar Bank, FSB 5 6.45% $10,054
Hancock Whitney Bank 5 6.05% $9,673
MUTUAL OF OMAHA MORTGAGE, INC. 4 6.31% $11,408
Blue Ridge Bank 4 6.59% $8,403
AMERICAN PACIFIC MORTGAGE CORPORATION 3 6.75% $8,031
PLANET HOME LENDING, LLC 3 6.79% $12,874
TOWNE MORTGAGE COMPANY 3 6.96% $10,579
Bell Bank 3 6.83% $10,941
VYSTAR 3 6.96% $6,540
Prosperity Home Mortgage, LLC 3 6.42% $10,798
MILEND, INC. 3 6.29% $13,684
HOMEBRIDGE FINANCIAL SERVICES, INC. 3 5.79% $16,051
NEWREZ LLC 3 7.04% $8,164
ZILLOW HOME LOANS, LLC 2 6.81% $9,072
AMERICAN FINANCING CORPORATION 2 6.37% $9,143
Bank of England 2 6.69% $9,155
EVERETT FINANCIAL, INC. 2 7.31% $15,750
GUARANTEED RATE AFFINITY, LLC 2 7.44% $11,257
GUARANTEED RATE, INC. 2 5.95% $10,440
Lakeview Community Capital, LLC 2 5.50% $9,258
LOANLEADERS OF AMERICA, INC. 2 5.13% $12,508
MICHIGAN MUTUAL, INC. 2 7.13% $11,351
Mortgage Research Center, LLC 2 6.12% $6,400
Nations Lending Corporation 2 7.38% $12,591
NBKC BANK 2 5.56% $8,851
NETWORK CAPITAL FUNDING CORPORATION 2 6.63% $9,012
NEW DAY FINANCIAL, LLC 2 7.50% $8,683
NFM, INC. 2 5.88% $12,025
Plains Commerce Bank 2 5.94% $10,530
PLAZA HOME MORTGAGE, INC. 2 6.88% $9,997
Synovus Bank 2 6.69% $8,170
TOP FLITE FINANCIAL, INC. 2 7.13% $26,228
Mortgage Lenders Investment Trading Corporation 1 7.75% $22,834
CALIBER HOME LOANS, INC. 1 6.75% $8,546
HOMEOWNERS FINANCIAL GROUP USA, LLC 1 7.63% $8,970
Gulf Coast Bank and Trust Company 1 6.13% $7,247
GUILD MORTGAGE COMPANY 1 6.63% $12,802
NATIONS DIRECT MORTGAGE, LLC 1 6.75% $11,881
Barrington Bank & Trust Company, N.A. 1 5.75% $7,672
NATIONWIDE MORTGAGE BANKERS, INC. 1 5.25% $30,167
BANKSOUTH MORTGAGE COMPANY, LLC 1 7.13% $10,929
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.63% $17,250
American Mortgage & Equity Consultants, Inc. 1 7.25% $12,449
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 7.00% $0
VILLAGE CAPITAL MORTGAGE 1 7.13% $23,704
ON Q FINANCIAL, INC. 1 6.75% $11,211
Origin Bank 1 5.63% $7,529
EMBRACE HOME LOANS, INC. 1 7.63% $10,375
DIAMOND RESIDENTIAL MORTGAGE CORPORATION 1 6.75% $11,554
ALLIED MORTGAGE GROUP, INC. 1 6.00% $17,674
Colonial Savings, F.A. 1 5.63% $10,677
ABSOLUTE HOME MORTGAGE CORPORATION 1 6.50% $9,215
PREMIA MORTGAGE, LLC 1 6.25% $5,235
Premium Mortgage Corporation 1 5.75% $8,599
CMG MORTGAGE, INC. 1 6.63% $9,667
CIS Financial Services, Inc. 1 7.50% $10,494
RADIUS FINANCIAL GROUP INC. 1 7.63% $12,959
RANLIFE, INC. 1 7.75% $6,294
CIBM Bank 1 5.75% $17,097
RELIANCE FIRST CAPITAL, LLC 1 6.38% $12,816
ROYAL UNITED MORTGAGE LLC 1 7.00% $11,186
SECURITYNATIONAL MORTGAGE COMPANY 1 7.63% $8,400
Semper Home Loans, Inc. 1 7.25% $14,419
CHURCHILL MORTGAGE CORPORATION 1 6.63% $15,610
STOCKTON MORTGAGE CORPORATION 1 7.25% $13,655
SUN WEST MORTGAGE COMPANY, INC. 1 5.25% $8,022
Wells Fargo Bank 1 6.63% $9,255
The Federal Savings Bank 1 6.88% $12,849
KEESLER 1 5.63% $7,737
LADERA LENDING, INC. 1 7.25% $9,394
1ST SIGNATURE LENDING, LLC 1 6.63% $9,236
LAKEVIEW LOAN SERVICING, LLC 1 7.25% $11,180
LIBERTY HOME MORTGAGE CORPORATION 1 8.13% $9,241
Ixonia Bank 1 6.75% $13,583
Century Mortgage Company DBA Century Lending Company 1 5.75% $25,220
LOANPAL, LLC 1 5.75% $13,667
Loan Simple, Inc. 1 7.25% $14,689
MANN FINANCIAL INC. 1 7.13% $7,493
CANOPY MORTGAGE, LLC 1 7.13% $10,725
Hometown Equity Mortgage, LLC 1 6.88% $8,588
MLB RESIDENTIAL LENDING, LLC 1 6.88% $10,110

The top Tallahassee FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 101 FHA loans originated. Their average total fees are $10,832, which is $493 lower than the next largest lender, LOANDEPOT.COM, LLC.

The lowest fee Tallahassee FHA lenders (with over 10 loans originated) are VAN DYK MORTGAGE CORPORATION ($7,865), DHI MORTGAGE COMPANY, LTD. ($8,868), Ameris Bank ($9,230), ServisFirst Bank ($9,614) and AMERICAN FINANCIAL NETWORK, INC. ($10,072).

The lowest rate Tallahassee FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.55%), Carrington Mortgage Services, LLC (6.17%), CARDINAL FINANCIAL (6.20%), BAY CAPITAL MORTGAGE CORPORATION (6.21%) and AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC (6.25%).

Tallahassee FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
TALLAHASSEE, FL GADSDEN 2022 $420,680 $538,650 $651,050 $809,150
TALLAHASSEE, FL JEFFERSON 2022 $420,680 $538,650 $651,050 $809,150
TALLAHASSEE, FL LEON 2022 $420,680 $538,650 $651,050 $809,150
TALLAHASSEE, FL WAKULLA 2022 $420,680 $538,650 $651,050 $809,150
TALLAHASSEE, FL GADSDEN 2023 $472,030 $604,400 $730,525 $907,900
TALLAHASSEE, FL JEFFERSON 2023 $472,030 $604,400 $730,525 $907,900
TALLAHASSEE, FL LEON 2023 $472,030 $604,400 $730,525 $907,900
TALLAHASSEE, FL WAKULLA 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Tallahassee (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 $219,900 (15.8%) $292,666 (8.1%) 0.82 1,135
2018-02-01 $220,000 (12.9%) $294,346 (10.4%) 0.80 1,149
2018-03-01 $224,900 (12.5%) $298,611 (10.9%) 0.79 1,206
2018-04-01 $223,950 (12.0%) $298,184 (9.0%) 0.76 1,284
2018-05-01 $225,600 (11.4%) $301,180 (7.9%) 0.75 1,325
2018-06-01 $231,950 (12.3%) $303,883 (8.5%) 0.77 1,346
2018-07-01 $235,000 (11.9%) $299,917 (6.8%) 0.78 1,375
2018-08-01 $229,500 (9.3%) $296,187 (5.3%) 0.77 1,432
2018-09-01 $223,781 (5.8%) $292,151 (2.1%) 0.75 1,412
2018-10-01 $221,800 (0.1%) $286,751 (-1.3%) 0.75 1,362
2018-11-01 $223,840 (1.8%) $287,118 (-2.2%) 0.76 1,328
2018-12-01 $222,780 (1.3%) $285,749 (-2.0%) 0.77 1,282
2019-01-01 $224,725 (2.2%) $289,995 (-0.9%) 0.78 1,192
2019-02-01 $229,973 (4.5%) $289,170 (-1.8%) 0.78 1,194
2019-03-01 $234,979 (4.5%) $285,593 (-4.4%) 0.77 1,470
2019-04-01 $234,925 (4.9%) $282,269 (-5.3%) 0.75 1,853
2019-05-01 $232,100 (2.9%) $284,966 (-5.4%) 0.73 1,894
2019-06-01 $238,360 (2.8%) $291,953 (-3.9%) 0.74 1,871
2019-07-01 $239,800 (2.0%) $292,454 (-2.5%) 0.75 1,893
2019-08-01 $239,900 (4.5%) $288,975 (-2.4%) 0.76 1,865
2019-09-01 $239,900 (7.2%) $286,764 (-1.8%) 0.77 1,788
2019-10-01 $239,900 (8.2%) $284,876 (-0.7%) 0.77 1,721
2019-11-01 $235,000 (5.0%) $282,576 (-1.6%) 0.77 1,615
2019-12-01 $229,450 (3.0%) $278,448 (-2.6%) 0.77 1,460
2020-01-01 $232,520 (3.5%) $279,670 (-3.6%) 0.78 1,428
2020-02-01 $235,000 (2.2%) $282,590 (-2.3%) 0.77 1,571
2020-03-01 $240,000 (2.1%) $288,028 (0.9%) 0.75 1,656
2020-04-01 $240,000 (2.2%) $288,195 (2.1%) 0.75 1,663
2020-05-01 $241,000 (3.8%) $293,959 (3.2%) 0.73 1,659
2020-06-01 $240,750 (1.0%) $290,619 (-0.5%) 0.71 1,701
2020-07-01 $245,450 (2.4%) $290,693 (-0.6%) 0.71 1,669
2020-08-01 $248,200 (3.5%) $295,101 (2.1%) 0.71 1,587
2020-09-01 $249,900 (4.2%) $300,235 (4.7%) 0.72 1,555
2020-10-01 $249,900 (4.2%) $301,043 (5.7%) 0.72 1,491
2020-11-01 $241,550 (2.8%) $299,680 (6.1%) 0.71 1,438
2020-12-01 $237,000 (3.3%) $299,850 (7.7%) 0.70 1,312
2021-01-01 $239,900 (3.2%) $295,607 (5.7%) 0.72 1,225
2021-02-01 $249,450 (6.2%) $299,066 (5.8%) 0.73 1,267
2021-03-01 $250,000 (4.2%) $301,086 (4.5%) 0.71 1,331
2021-04-01 $252,200 (5.1%) $300,986 (4.4%) 0.68 1,381
2021-05-01 $259,900 (7.8%) $303,321 (3.2%) 0.69 1,424
2021-06-01 $260,500 (8.2%) $307,341 (5.8%) 0.69 1,445
2021-07-01 $260,000 (5.9%) $306,270 (5.4%) 0.69 1,458
2021-08-01 $265,000 (6.8%) $309,583 (4.9%) 0.71 1,465
2021-09-01 $268,850 (7.6%) $311,672 (3.8%) 0.72 1,486
2021-10-01 $269,900 (8.0%) $316,156 (5.0%) 0.72 1,453
2021-11-01 $273,000 (13.0%) $320,321 (6.9%) 0.73 1,365
2021-12-01 $277,450 (17.1%) $323,338 (7.8%) 0.75 1,219
2022-01-01 $289,000 (20.5%) $334,249 (13.1%) 0.78 1,011
2022-02-01 $294,950 (18.2%) $340,203 (13.8%) 0.77 1,079
2022-03-01 $289,900 (16.0%) $345,020 (14.6%) 0.73 1,066
2022-04-01 $287,500 (14.0%) $344,550 (14.5%) 0.69 1,129
2022-05-01 $292,625 (12.6%) $351,626 (15.9%) 0.67 1,239
2022-06-01 $299,450 (15.0%) $363,667 (18.3%) 0.67 1,280
2022-07-01 $310,000 (19.2%) $374,857 (22.4%) 0.70 1,297
2022-08-01 $300,000 (13.2%) $372,617 (20.4%) 0.69 1,265
2022-09-01 $307,475 (14.4%) $372,109 (19.4%) 0.72 1,166
2022-10-01 $316,500 (17.3%) $380,008 (20.2%) 0.74 1,153
2022-11-01 $319,925 (17.2%) $383,646 (19.8%) 0.77 1,155
2022-12-01 $319,000 (15.0%) $383,927 (18.7%) 0.79 1,042
2023-01-01 $310,500 (7.4%) $375,319 (12.3%) 0.77 975
2023-02-01 $316,250 (7.2%) $376,072 (10.5%) 0.76 1,036
2023-03-01 $325,125 (12.2%) $387,485 (12.3%) 0.77 1,066
2023-04-01 $330,000 (14.8%) $391,891 (13.7%) 0.77 1,092
2023-05-01 $329,500 (12.6%) $391,688 (11.4%) 0.75 1,091
2023-06-01 $335,000 (11.9%) $395,128 (8.7%) 0.75 1,106
2023-07-01 $339,900 (9.7%) $398,040 (6.2%) 0.77 1,106
2023-08-01 $339,225 (13.1%) $397,887 (6.8%) 0.78 1,148
2023-09-01 $329,900 (7.3%) $394,013 (5.9%) 0.77 1,150
2023-10-01 $315,000 (-0.5%) $384,191 (1.1%) 0.74 1,202
2023-11-01 $317,225 (-0.8%) $383,928 (0.1%) 0.76 1,239
2023-12-01 $314,900 (-1.3%) $379,959 (-1.0%) 0.77 1,165
2024-01-01 $313,525 (1.0%) $376,455 (0.3%) 0.77 1,165
2024-02-01 $318,650 (0.8%) $383,378 (1.9%) 0.77 1,258
2024-03-01 $320,000 (-1.6%) $388,118 (0.2%) 0.75 1,322
2024-04-01 $321,549 (-2.6%) $384,482 (-1.9%) 0.75 1,394
Tallahassee's median listing price for 2024-04-01 was $321,549, a difference of $-8,451 (-2.6%) versus the prior year and $1,549 versus the prior month.

Tallahassee's median listing price comes in at 75% of the national average.

Tallahassee's average listing price for 2024-04-01 was $384,482, a difference of $-7,409 (-1.9%) versus the prior year and $-3,636 versus the prior month.

For the 2024-04-01 period, Tallahassee had 1,394 MLS listings, a difference of 72 listings (5%) versus the prior month and 302 listings (28%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Tallahassee (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 73 days 1,698 sqft
2018-02-01 67 days 1,693 sqft
2018-03-01 54 days 1,714 sqft
2018-04-01 51 days 1,709 sqft
2018-05-01 50 days 1,700 sqft
2018-06-01 56 days 1,730 sqft
2018-07-01 58 days 1,742 sqft
2018-08-01 55 days 1,717 sqft
2018-09-01 60 days 1,706 sqft
2018-10-01 69 days 1,692 sqft
2018-11-01 73 days 1,681 sqft
2018-12-01 79 days 1,658 sqft
2019-01-01 79 days 1,670 sqft
2019-02-01 70 days 1,711 sqft
2019-03-01 58 days 1,704 sqft
2019-04-01 48 days 1,696 sqft
2019-05-01 48 days 1,695 sqft
2019-06-01 51 days 1,714 sqft
2019-07-01 51 days 1,728 sqft
2019-08-01 53 days 1,730 sqft
2019-09-01 57 days 1,720 sqft
2019-10-01 59 days 1,711 sqft
2019-11-01 63 days 1,682 sqft
2019-12-01 71 days 1,671 sqft
2020-01-01 72 days 1,657 sqft
2020-02-01 46 days 1,664 sqft
2020-03-01 45 days 1,685 sqft
2020-04-01 52 days 1,687 sqft
2020-05-01 57 days 1,677 sqft
2020-06-01 48 days 1,656 sqft
2020-07-01 48 days 1,655 sqft
2020-08-01 46 days 1,672 sqft
2020-09-01 47 days 1,672 sqft
2020-10-01 49 days 1,662 sqft
2020-11-01 51 days 1,640 sqft
2020-12-01 54 days 1,610 sqft
2021-01-01 58 days 1,614 sqft
2021-02-01 44 days 1,634 sqft
2021-03-01 40 days 1,645 sqft
2021-04-01 39 days 1,651 sqft
2021-05-01 37 days 1,631 sqft
2021-06-01 36 days 1,606 sqft
2021-07-01 38 days 1,592 sqft
2021-08-01 38 days 1,595 sqft
2021-09-01 41 days 1,594 sqft
2021-10-01 46 days 1,606 sqft
2021-11-01 50 days 1,625 sqft
2021-12-01 57 days 1,648 sqft
2022-01-01 60 days 1,670 sqft
2022-02-01 38 days 1,652 sqft
2022-03-01 36 days 1,622 sqft
2022-04-01 31 days 1,600 sqft
2022-05-01 32 days 1,617 sqft
2022-06-01 34 days 1,661 sqft
2022-07-01 35 days 1,690 sqft
2022-08-01 38 days 1,668 sqft
2022-09-01 45 days 1,665 sqft
2022-10-01 44 days 1,688 sqft
2022-11-01 44 days 1,697 sqft
2022-12-01 55 days 1,698 sqft
2023-01-01 60 days 1,655 sqft
2023-02-01 45 days 1,657 sqft
2023-03-01 41 days 1,696 sqft
2023-04-01 39 days 1,702 sqft
2023-05-01 39 days 1,686 sqft
2023-06-01 37 days 1,700 sqft
2023-07-01 38 days 1,686 sqft
2023-08-01 36 days 1,661 sqft
2023-09-01 42 days 1,640 sqft
2023-10-01 43 days 1,612 sqft
2023-11-01 45 days 1,617 sqft
2023-12-01 51 days 1,613 sqft
2024-01-01 53 days 1,592 sqft
2024-02-01 43 days 1,611 sqft
2024-03-01 44 days 1,608 sqft
2024-04-01 43 days 1,593 sqft
Tallahassee's median listing age (time on market) for 2024-04-01 was 43 days. This is 10% longer than the same period one year ago.

Tallahassee's median square footage for active listings during the 2024-04-01 period was 1,593 sqft. One year prior, the average listing was 1,702 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).