The FHA appraiser lists the estimated cost of repairs needed to bring the property up to minimum FHA standards. This amount is then multiplied by 110% and this amount is listed as the repair escrow amount. Example: if repairs total $1,000 x 110% = $1,100.  The Repair Escrow amount will be listed at $1,100.  Repair escrow ONLY applies to FHA financing – not cash or conventional transactions.