Answer

In some instances adverse weather conditions may prevent completion of exterior repairs on an existing property (for example painting) or items on new construction (such as landscaping).
In these situations, funds may be escrowed (escrowed funds must be equal to 150% of the estimated repair costs) and FHA will accept a Mortgagee's Assurance of Completion, Form HUD-92300, at the time of endorsement.
This procedure may be used only when the following conditions apply:
1. The dwelling is habitable, safe, and essentially complete
2. The deferred work cannot be acceptably completed prior to loan closing, but will be completed within six months
3. All other conditions of the appraisal have been satisfied by compliance inspections or by an acceptable Mortgagee's Assurance of Completion, AND,
4. The lender has not been denied the privilege of using a Mortgagee's Assurance of Completion due to poor follow-up or non-satisfaction of outstanding escrows.
The lender assumes the obligation to satisfactorily complete the repairs or improvements, regardless of the adequacy of the funds reserved in escrow.

An appraiser appearing on FHA's Appraiser Roster (see http://www.hud.gov/groups/appraisers.cfm) or an inspector appearing on FHA's Inspector Roster (see http:www.hud.gov/offices/hsg/sfh/insp/inspectr.cfm) must confirm that the work was completed.

Alternatively, a professionally licensed, bonded, registered engineer; licensed home inspector; or appropriately registered/licensed trades person, as applicable, can provide the documentation to support that all deficiencies noted by the appraiser been acceptably corrected.
Also see Section 5-1 of Handbook 4145.1for additional information on this procedure.

Handbook 4155.2: 4. 6. d