A VA escrow hold-back loan enables a veteran using a VA home loan to finance repair costs.  The subject repairs are those required by an VA appraiser and/or VA underwriter.  Examples include:

Broken air conditioner
Cracked window
Exposed wiring

A VA escrow hold-back loan allows a VA home-buyer to purchase their home first and then complete repairs after closing on their Arizona VA loan.

VA Escrow Hold-back Eligible Repairs

Eligible escrow hold-back repairs must be listed on the appraisal by the VA appraiser and/or underwriter as a violation of VA’s minimum property standards.  Borrower desired renovations/repairs do not qualify (unless they are also required by an appraiser or underwriter).

Maximum Amount Financed

The VA escrow hold-back program allows an Arizona VA buyer to finance up to $5,000 in repairs.

– If the required repairs cost exceed $5,000 either the buyer or the seller can cover the excess themselves with underwriting approval 

Loan Type(s) Used With This Program

Borrower must use a VA loan when utilizing the VA Escrow Hold-back option.

Maximum Time to Complete Repairs

The VA escrow-holdback loan allows up to 30 days after closing for the repairs to be completed.  30 days is measured from the date the loan closes (on both refinances and purchases).

Contractor Regulations

The VA Escrow Hold-back program will allow up to 3 contractors.  The contractor(s) cannot be the borrower, a family member, realtor/loan officer involved in the transaction or the borrower’s employer.

Contractor(s) are approved by our Renovation department.  Documents needed to review/approved a contractor include:

Other Renovation Loans

HomeStyle Reno Loan
Build or Repair a Pool Escrow Holdback
FHA 203k
FHA Escrow Holdback
USDA Escrow Holdback