How long does the mortgagee have to release funds from the 203(k) rehab escrow account?

The mortgagee must release funds within five business days after receipt of a properly executed draw request and title update when necessary. 

For additional information see Handbook 4000.1 II.A.8.a.xviii.(C)(1)(d) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04913