So we have put my Mother in Laws house on the market in Sugar Land. She is 86 and in a nursing home and we have to sell to pay for the nursing home. Her house is very old and sits on “ The Hill” on 6th street behind the old sugar mill. All of those old homes are being sold and remodeled. All of the wiring will have to be redone and probably plumbing to bring it up to code. The house is on blocks not a slab. The house is in really good shape for its age and perfectly livable but we have been told that it will have to be a cash sale as no lending institution would lend money to by one that is not in code. Is this true? We are not going through an agent and have 3 showings next Monday after one week on the market. Any help or advice would be much appreciated.
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Will Lenders Finance An Old House That Is Out Of Code?
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Will Lenders Finance An Old House That Is Out Of Code?
The general premise that banks won’t lend on houses that are out of code is false. Codes change all the time.
If they don’t think it is adequate collateral after inspection that could cause problems, but that’s an individual bank and house issue, not an industry rule.
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First, any home build say 6 years ago will not meet the new electrical code. Homes built in the 50's and 60's still sell and they don't meet code.
Sell it "as is, no repairs" If it is still in good shape and no one has added rooms or other things that weren't done correctly, you shouldn't have a problem.
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Good luck on your sale. I don’t think you will have any problems with a buyer getting a loan on the home if it has been well take care of. That is a cool old neighborhood. My wife grew up in that area and we were married in St Theresa’s church. I’m not Catholic but attended that church for about 35 yrs.
We sold my MILs house not far from there about 10 yrs ago and we’re told a buyer would have issues getting a loan because of the type breaker panel was originally used. It never came up during inspection or by the lender.
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