As home buyer advocates, the loan counselors provide a support system to aid in payment issues, home maintenance and financial education. These home buyers are then unable to finance the repairs as they have little or no equity. A negotiation with the seller assures the buyer that deferred maintenance items and other necessary repairs are either completed before closing or escrowed at closing. To ensure that household maintenance and repairs do not jeopardize the home buyer's ability to make monthly mortgage payments. The funds are set up as an interest bearing savings account.
Withdrawals are limited to emergency repairs on the house.
Thanks to Edna Campbell for her help in obtaining this article.