EZ “C”onventional Repair Escrow: Lending the Easy Way
When you see EZ “C”onventional Repair Escrow, naturally you want to know what’s easy about it. This escrow product makes it simple to finance small upgrades on a newly purchased home over a short period of time. This escrow also can take it easy on your bank account, dodging duplicate fees and the higher fees common to multiple transactions.
Renovating my house with an EZ “C”onventional Repair Escrow
Sometimes only a few cosmetic updates stand between you and your beautiful new home. An appraiser will write down a list of needed fixes before a home can be purchased, or you will come up a list of your own. If this happens to you, an EZ “C”onventional Repair Escrow gives you a way to make these improvements without diving too far into your savings.
With an EZ “C”onventional Repair Escrow, the lender rolls the money to finance the house and complete repairs into a single home loan. The appropriate funds go to pay for the house. The fix-it funds are held in an escrow account in the trust of the lender. After both sides agree to a contractor, the improvements are made and the lender handles the payments.
Kitchen or bedroom improvements
Not all EZ “C”onventional Repair Escrow activity comes as a matter of necessity. If you would like to improve a bedroom or outfit the kitchen with new cabinets, an EZ Escrow would help you do that. The changes can only be cosmetic – no structural improvements are allowed. They also must be attached to the property and add value.
The program is designed to handle smaller repairs that can be fixed in 60 days or less. The cap for costs is $35,000 of the improved value. To get started, you will only need to provide 5% of the combined value.