Kentucky Rural Housing USDA Repair Escrow Guidelines
- Minimum amount: $500 USDA Guaranteed Loan Program Only in Kentucky
- The cost of any remaining work, exterior or interior, is not greater than $5,000;
- The livability of the dwelling is not affected;
- A signed contract between the borrower and the contractor is in effect for the proposed work and the funds to be escrowed are not less than the contract;
- The final Settlement Statement reflects the holdback;
- The work will be complete within 90 days of closing (except in cases of exterior repairs that cannot be completed due to inclement weather);
- Certification of completion is provided to verify the work was completed, and must:
- Be completed by the appraiser;
- State that the improvements were completed in accordance with the requirements and conditions in the original appraisal report;
- Be accompanied by photographs of the completed improvements; and
- The individual performing the final inspection of the property must sign the completion report.
- An amount equal to one and a half percent (1.50%) of the estimated cost of the repairs will be collected at time of closing (so the maximum escrow amount permitted would be $7,500).
phone: (502) 905-3708