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Escrow Holdback Program


How about rolling home repairs into your mortgage?

With the USDA Escrow Holdback program, homebuyers can conveniently finance the cost of home repairs into their mortgage.

The USDA Escrow Holdback Program shares many of the USDA financing features:

  • 100% no down payment program
  • Seller closing cost credit allowed up to 6%
  • Low monthly mortgage insurance = low monthly mortgage payments

It also features these added attributes:

  • Close, upfront features are done after closing
  • Use for foreclosures and short sales needing repair
  • USDA rural housing repair escrow allowed up to 10% of the final loan amount.
  • Exceptions for amounts over $2,000 are allowed, up to $10,000. 
  • Repairs must be required by the Appraiser or Underwriter

FHA Minimum Property Standards: 

Used for repairs called for by the appraiser, underwriter or other inspector to bring the home up to meet the HUD minimum property standards.  Max of $5,000.

USDA Minimum Property Standards:

Used for repairs called for by the appraiser, underwriter or other inspector to bring the home up to meet the HUD minimum property standards.  Max of the lesser of 10% of $10,000

Pool Escrow:

Used to finance the cost of an inground swimming pool.  Max of the lesser of 35% of the after improved value or $85,000.

EZ Conventional:

Up to $35,000 in improvements of the borrowers choice excluding any structural modifications.