Hello, I thought I would chime in on this one! The other poster is correct, you need to consult your mortgage lender and it might depend on your states laws but, from my stand point (Builder) yes you can close with a c/o, I've done lots of them but, I would caution you, especial on a variance issue! If you do you can do what is called a "Dry closing" (money held in escrow @ the title company), or a "Hold Back". If you do a hold back, I would make it a significant one. Don't let the builder tell you would He thinks it will cost. Hold backs are usually 1-1/2 times cost. But here again you are not talking about a normal hold back? Variances are not given out lightly! Check with the governing body….i.e. city, village, and town….etc..