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Repair escrow options for your home

If the home you’re buying — or the one you already own — needs some repairs, a repair escrow loan can be an ideal solution. Rather than taking out a separate loan or relying on credit cards, you can simply include the cost of renovations in your mortgage. This means one convenient monthly payment, less hassle, and a faster path to settling in or making your home truly your own.

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At LendComet, we provide a variety of repair escrow loan options tailored to different loan types and renovation needs. But before exploring the specifics, let’s start with the fundamentals.

What is a repair escrow?

A repair escrow is a dedicated account established by your lender to cover the cost of home repairs or improvements. The funds are set aside at closing and can only be used for the specific projects listed in your renovation agreement.

Think of it as a built-in renovation budget that’s seamlessly rolled into your mortgage — no need for separate loans or high-interest credit cards.

This setup allows you to:

  • Combine your renovation costs with your home loan

  • Start repairs immediately after closing

  • Simplify payments with one monthly mortgage

  • Ensure that all repairs are completed efficiently and on schedule

Repair escrows are a great fit when a property needs a few upgrades to meet lending standards or simply to better match your vision. Whether you’re buying a foreclosed home or negotiating repairs as part of a sale, a repair escrow loan offers a smooth and flexible solution.

Explore your repair escrow options

HUD REO with repair escrow

Considering a foreclosed home? This loan might be the perfect fit.

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HUD REO loans with a repair escrow are specifically designed for properties owned by the U.S. Department of Housing and Urban Development (HUD). These homes are often priced below market value, giving buyers the opportunity to invest in upgrades and build equity quickly.

With this program, you can:

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  • Finance up to 110% of the home’s appraised value (including repair costs)

  • Complete all repairs within 90 days of closing

  • Transform an affordable HUD property into the home you’ve always wanted

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It’s a smart way to combine value and vision — turning a great deal into your next dream home.

USDA repair escrow

A USDA repair escrow gives homebuyers — or homeowners refinancing — the ability to include repair or improvement costs directly into their USDA loan. It’s a streamlined solution for eligible rural properties that need a little extra work before move-in.

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With this option, you can:

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  • Combine your purchase or refinance with essential home repairs

  • Enjoy one convenient loan and one monthly payment

  • Avoid taking out additional credit lines or paying repair costs upfront

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It’s a simple, affordable way to make necessary improvements while keeping your financing under one roof.

Buyer/Seller-funded repair escrow

Need to make a few updates before move-in day? With this option, either the buyer or the seller can fund the repair escrow — making it ideal for negotiated fixes or borrower-requested improvements.

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Here’s why it’s a convenient choice:

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  • Flexible funding — The buyer or seller can contribute to the repair costs

  • All-in-one financing — Repairs are bundled right into your mortgage

  • Quick upgrades — Perfect for small improvements or required fixes before closing

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A repair escrow can be a smart, flexible way to turn a house into your home — without overstretching your budget.
Ready to take the next step? Connect with a LendComet loan expert today to explore your options and find a home loan that fits your goals.

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