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When Can Funds Be Put In Escrow For Repairs?
It is not uncommon for a Realtor or a Borrower to ask me if funds can be put into escrow so repairs can be done after the closing.  The answer is both a YES and NO answer.  So When Can Funds Be Put In Escrow For Repairs?
First of all the only Loan Products I am ware of which allow for funds to be put into escrow for repairs after the loan Closes are Fannie Mae Homepath Loans on Fannie Mae REO Properties, FHA 203K, and FHA Loans on FHA/HUD owned properties.  HUD will not make repairs prior to the Closing, and do not allow the Buyer to go into the property to make repairs.  So FHA will allow funds to be put into escrow on their foreclosed properties since they will be insurer of the new loan. 
All other loans I am aware of ALL repairs have to be completed prior to the Closing EXCEPT if weather does not permit for repairs to be made.  Some examples of situations of when funds are allowed to be put into escrow for repairs because of weather conditions are:
A Roof which needs to be repaired or replace during Winter months in a State where ... more

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