HUD "Insured" Repair Escrow?

I am confused about HUD’s that have “insured” repair escrows? I was under the impression if a HUD is insured its qualified for FHA financing IF the needed repairs made meet FHA minimum property standards.

If a HUD property is not “insured” then the property will not be able to qualify for FHA financing even if it gets fixed up.

Is this correct?

Thank you