what is uninsurable property 
uninsurable property is a home that is not eligible for insurance through the federal housing administration fha because it needs extensive repairs an uninsurable property is typically ineligible for a mortgage through the fha however the individual purchasing the home may qualify for alternative fha financing options in some circumstances 1more generally uninsurable property may refer to any real estate or other personal property that an insurer decides not to cover understanding uninsurable propertythe federal housing administration fha is overseen by the u s department of housing and urban development hud the fha insures mortgage loans to protect lenders against default allowing fha approved mortgage lenders to offer more attractive options such as a 3 5 downpayment versus the traditional 20 the insurance and mortgages offered through fha come with certain requirements on the condition of the property in the transaction if the repairs required to meet those requirements exceed the fha s limit the property will not be accepted into the program in general the property must meet the minimum property requirements meaning the home must be safe sound and secure 2typically an appraiser and inspector will come out to verify that the requirements have been met which include some of the issues that could prevent insuring a property might include 2repairs on housing may be necessary because of damage from fires storms or age that has made parts of the property fall below standards 31to qualify for an fha loan borrowers must have a minimum credit score of 580 make a downpayment of at least 3 5 of the home s purchase price and obtain mortgage insurance 4