When users cast close votes they think the current version of the question is close worthy and intend to close the question.
If the question is later fixed while the question is "on hold" that's great and obviously a preferred outcome.
Effectively "closed" and "on hold" are the same thing, for a long time we didn't even have the "on hold" step, questions were just closed directly. "On hold" was added in the hope of encouraging users to edit rather than abandon their problematic posts.
TL;DR; Effectively "closed" and "on hold" are the same thing, if you can't salvage the question yourself, don't hesitate to vote to close.