Foundation & Your Home Loan
Should I Buy A House That Need Foundation Repairs?
The decision may not be yours alone to make. Your lender will definitely have a say.
Remember, your initial approval depends on your creditworthiness and financial situation, but the final approval often hinges on the value of the home you’re trying to buy, as that’s the security for the loan.
If You’re Applying For A Government-Backed Loan
If you’ve applied for an FHA, VA, or USDA loan, understand that those programs have strict requirements regarding the structural soundness of the home you’re seeking to purchase. The U.S. government offers these loans to help low- and medium-income earners buy safe housing for them and their families.
Specifically, to get final mortgage approval, the home appraisal must show that the roof and foundation are in good condition, and meet other criteria as well. Finding that the foundation needs repairs may delay, if not stop, your purchase of that home.
If You’re Applying For A Conventional Mortgage
Private lenders are less interested in the livability of the home than in whether the home’s resale value will cover the amount of the loan. If the seller agrees to make the foundation repairs and makes them quickly, your closing might be slightly delayed, but it will go forward once proof of the repair has been received.
