That’s wild, I’ve seen lenders handle those little repairs totally differently. Like,
I’ve had deals where the lender was fine with a small escrow for chipped paint or missing handrails, but then other times they’re super rigid. Wonder if it depends more on the underwriter or maybe even the region? Anyone ever actually get a repair escrow approved for minor stuff, or is that just rare these days?“no repair escrow, even though I’d read online that it was sometimes possible.”
That’s wild, I’ve seen lenders handle those little repairs totally differently. Like, I’ve had deals where the lender was fine with a small escrow for chipped paint or missing handrails, but...
I’ve run into the same thing—sometimes lenders are totally fine with a small repair escrow for stuff like “chipped paint or missing handrails,” other times they just won’t budge. In my experience, it really does seem to come down to the underwriter’s mood or maybe even the specific loan program. I had one FHA deal where they let us escrow for a broken window pane, but another time, they flat-out refused over a loose stair rail. Curious if anyone’s seen more flexibility with certain types of lenders, like local banks versus big national ones?
I get what you’re saying about underwriters and loan programs, but I’d push back a bit on the idea that it’s just about “the underwriter’s mood.” In my experience, especially with lower credit scores like 580, lenders are way more cautious about anything that could be seen as a safety or habitability issue. Even something that seems minor—like a loose stair rail—can be a dealbreaker if it’s flagged in the appraisal.
“sometimes lenders are totally fine with a small repair escrow for stuff like ‘chipped paint or missing handrails,’ other times they just won’t budge.”
I’ve actually seen local banks be stricter than the big guys, especially if they’re holding the loan in-house. They don’t want any risk on their books. National lenders sometimes have more wiggle room, but only if the loan fits their guidelines to a T. At the end of the day, I wouldn’t count on flexibility, especially with a 580 score. It’s safer to assume repairs will need to be done before closing, or you could end up scrambling last minute.
Honestly, I get where you’re coming from, but I’ve actually had the opposite experience with some lenders. Like, yeah, a 580 score definitely means more hoops to jump through, but I’ve seen FHA lenders let stuff slide as long as it’s not a major safety thing. Sometimes they’ll even let you escrow for repairs if you can show you’ve got the funds lined up.
“It’s safer to assume repairs will need to be done before closing, or you could end up scrambling last minute.”
That’s fair, but in my case, we negotiated with the seller to fix a couple of minor things after the appraisal flagged them. It was stressful, but not impossible. I think it really depends on the lender and how motivated the seller is. Local banks can be strict, but I’ve also found some credit unions that were surprisingly flexible—maybe because they knew the area?
Not saying it’s easy with a 580 score (it’s not), but sometimes there’s more wiggle room than people expect... just gotta be ready for a lot of paperwork and last-minute requests.
That’s interesting—maybe I just have bad luck with lenders, but every time I’ve tried to get something waived or escrowed, it’s like pulling teeth. Maybe it’s a regional thing? Or just which underwriter you get on a given day. I totally agree about credit unions, though; they seem to care more about the community than the big banks do. Still, with a 580, I always feel like I’m waiting for someone to say “nope, not today.” Anyone else feel like half the process is just crossing your fingers and hoping the paperwork gods are in a good mood?
