Repair escrow

A loan may close before every listed repair is done. Money is set aside and released when the work is finished. That holdback is a repair escrow. The monthly escrow account pays taxes and insurance over the life of the loan. A repair escrow is a one-time completion holdback.

HUD Handbook 4000.1 repair-completion escrow headings are PRIMARY. Regulation X escrow-account rules are supporting context so the ordinary escrow account stays distinct.

Borrowers hear escrow and think of the tax-and-insurance account. Repair holdbacks answer a different closing problem.

• Escrow account

• Streamline refinance

A repair escrow holds funds so specified repairs can be finished after closing. Program rules, eligible items, and time limits are not universal and are not listed. This is not an ordinary tax-and-insurance escrow account.