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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?

    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.

    #2
    Market is still hot enough I'd expect to be getting cash offers.

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      #3
      Originally posted by SmTx View Post
      Market is still hot enough I'd expect to be getting cash offers.
      We are. All 3 on Monday know that we want a cash sale. Just wondering if we have options if needed.

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        #4
        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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          #5
          If it’s livable a bank will likely lend on it.

          If it doesn’t sell let me know. I’m an investor in sugar land area.


          Sent from my iPhone using Tapatalk

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            #6
            going through the same deal right now here. already had 2 contracted sales back out in their option period over these things.

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              #7
              Originally posted by txjustin View Post
              If it’s livable a bank will likely lend on it.

              If it doesn’t sell let me know. I’m an investor in sugar land area.


              Sent from my iPhone using Tapatalk
              Will do.

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                #8
                Depends on what type of financing. I actually had an appraisal turned in yesterday and there are two lender required repairs, repaint the front door and fix the wallpaper tear in hall bath. FHA loan, good grief.

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                  #9
                  VA loan, probably not

                  Lots of other lenders….probably so

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                    #10
                    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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                      #11
                      Conventional financing shouldn’t be an issue as long as there are no obvious repairs noted by appraiser. Done many loans on old/vintage homes. Hope you get top dollar.

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                        #12
                        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.


                        Sent from my iPhone using Tapatalk

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                          #13
                          It will sell, just sell it 'as is'. Once you start having someone come in repair things though, then those items will have to be to current code. At least thats what I've been told.

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                            #14
                            Cash sales. Or financed without Inspector happens every day.

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                              #15
                              It's a buyer issue, they have to be preapproved to have any chance of buying a house. You want have any problem, just sit back enjoy the sale.

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