Can You Close on a Home With No A/C Unit?

by Tim Hart | Oct 27, 2018 4:57:00 PM

The answer is … no,  and this can be a major problem for you and your loan. If the house has had the A/C unit/ pool pump/ water heater stolen or broken and the lender will not close the loan until the equipment is fixed.

What we often see is the seller or buyer agrees to pay for the repair but will not do so until closing.

This is understandable because the seller does not want to waste money and the buyer does not want to improve a property that he doesn’t own yet.


We have a solution that will allow the property to close, loan to fund, and the repairs to be done within 10 days of funding. We call this an "Escrow Holdback."

We require that you get 2 estimates from licensed contractors. We will stipulate that 1.5 times the amount of the highest bid be put into escrow at closing. Example: highest bid is a $1,000. We will require 1.5 times ($1,500) held in escrow.

Next you schedule the work to be done shortly after closing.

Once work is completed we send out an appraiser for final inspection and then release the funds to the contractor.

This program is for minor repairs like the A/C unit, water heater, pool pump etc. It is not to be used on a new roof, kitchen/bath remodel etc. It is not a renovation loan.

Hopefully this information helps you in with you’re A/C Closing questions.

If we can ever help you with an Escrow Holdback , or anything else you may need to get into the home you have been waiting for give us a call 239-437-4278!

Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

Check Out My Fishing Show Rates & Reels | Apply Now
Like this Article? Share it!

Additional Reading