Is It Okay To Buy a House With Foundation Problems?

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.

Two men inspecting a brick wall outside, one holding a tablet and pointing at the wall.

3 Things to Consider When Buying a Home With Foundation Problems

While it may seem like a risk to buy a home with foundation issues, where are a few upsides to considering it. Let’s look at 3 major factors that may influence your decision on buying a home with damage to the foundation.

1) 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.

2) 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.

3) 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.

Repairing a Foundation: Tips & Best Practices

Watch this video from our friends at Groundworks for 12 tips related to foundation repair. When you follow these tips and work with an expert team like Alpha Foundations, you’ll be able to effectively fix foundation issues in the home you’re thinking about buying.

Schedule a Free Foundation Inspection With Alpha Foundations

If you’re looking to purchase a home with foundation issues in Georgia or Florida, contact Alpha Foundations for a free estimate on the repairs you need for a structurally sound new home. Since 2002, we’ve been helping homeowners in Florida restore the stability of their homes. Our solutions work—and they keep your foundation protected for good.

Get Your Free Estimate