It is permissible L’chatchila (initially). This was the ruling of Maran the Shulchan Aruch (Orach Chayim 160:6).

Only regarding water that is so hot that “the hand recoils from it” (Yad Soldet Bo) is there a discussion among the authorities (Poskim) as to whether it is valid for washing. However, this situation is not common at all, as people do not typically wash their hands with water of such a high temperature.

In practice, if the water accidentally became heated to such a degree (Yad Soldet Bo), one may let it sit until it cools down and the temperature drops below that level (Mishna Berurah, ibid.).