Lender requires repairs prior to close

[Bruce Harney]

I'm trying to buy a duplex and the seller is giving me a credit at close to replace the siding of the building. The lender is stating the repairs need to be completed prior to close but the seller does not want to do this. They want the lender to escrow the funds to repair the siding and distribute to contractor when work is complete after the sale.

My question: is it normal for a lender to escrow the funds and allow the work to be completed after the close?