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When Are Funds Allowed To Be Put In Escrow For Repairs?
Lenn Harley raised some excellent points in her blog "Repair Escrow?? Perhaps. Perhaps Not. Check With Your Lender."  Lenn was also correct when she responded to my comment and stated "I've had HUD escrows for repairs.  Not fun.  Conventional loans with repair escrows are virtually a thing of the past.  Still, I'll hear agents discussing them like they were an everyday occurrence."  Any Agent who thinks escrowing for repairs is a given, they are not dealing with reality.  So When Are Funds Allowed To Be Put In Escrow For Repairs?
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 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.  ... more

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