Finding the perfect home can seem nearly impossible at the best of times, and it’s even more challenging when the market is tight. When you’ve done all the groundwork to secure a loan and finally found the home that feels right, it can be crushing to find out the house has foundation problems. However, foundation issues don’t have to spell doom for you and your dream home. Consider the following three factors when making this critical decision.
The Seller May Bend
If the home inspector or structural engineer’s report reveals foundation problems, you may be able to get the seller to renegotiate. Once reports of this nature are revealed, the seller is obligated to disclose the issues to any future buyer, so you will be in a good position to get the price reduced or ask that the seller make the repairs before you purchase the home. Depending on the extent of repairs you are willing to oversee, you may be able to get a great deal.
You May Qualify for a Rehab Loan
If you are using a government-backed loan, the home needs to be structurally sound before final mortgage approval. However, you can get rehabilitation loans that allow you to repair the foundation issues so you can move forward. You can get these loans from the FHA, the USDA, or the VA. Private rehab loan options are also available.
You Can Adjust Your Terms
Lenders don’t like foundation issues, as they can significantly affect the home’s value depending on their extent. If foundation problems are discovered, lenders may revoke your mortgage offer. In these cases, you have two options. One: If you have the funds and it makes sense to do the repairs, you can skip financing and pay all cash. Two: You can try to persuade your lender to move forward by increasing your down payment enough to cover the repair cost, taking the risk off the lender’s plate.
Foundation Repair Done Right
Many foundation issues are relatively minor and affordable to fix, and even the more serious problems can be effectively solved if you work with the right company. A problematic foundation shouldn’t stand in the way of your dream home, and with Alpha Foundations, it doesn’t have to.