Fairway Escrow Holdbacks
Did you know Fairway allows for repair escrow holdbacks on all non-jumbo loan programs?
Fairway Wholesale Lending prefers that each property be 100% complete at the time of closing; however, there are situations that warrant exceptions for escrow holdbacks, such as weather-related circumstances, lack of materials available for finishing, foreclosure sales and short-sales where the seller cannot or will not allow property repairs to be completed prior to closing, among others.
Escrow holdbacks are used to facilitate loan closings for properties that are ready for occupancy but that require minimal completion or repair per the appraisal. The buyer or seller is required to establish a cash escrow that will ensure the completion of the required repairs. The cash escrow will be 1.5 times the cost of the estimated repairs (non-HUD REO properties). The proceeds of the cash escrow are held in an escrow account with Fairway until the incomplete items or repair requirements are completed.
Upon completion of the repairs, a final inspection by the appraiser will be required to release funds. Therefore, a Change of Circumstance form to add the inspection fee must be submitted within 3 days of notification of repair requirements.
Based on the extent and nature of repairs, an exception by Credit Policy may be required.
Appraisal must be initially evaluated with a C4 or better condition rating. Fairway will not accept a C5 or C6 rating.