A VA escrow hold-back loan helps veterans finance repair costs into their VA home loan.  The program requires the financed repairs be limited to those required by an VA appraiser and/or VA underwriter. For example:

Broken air conditioner
Cracked window
Exposed wiring

The VA escrow hold-back loan program is very flexible.  It allows VA home-buyers to purchase their home and then complete the repairs financed by the VA escrow hold-back program after closing on their VA home 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-hold-back 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 Hold-back
FHA 203k
FHA Escrow Hold-back
USDA Escrow Hold-back