The foundation is arguably the most important part of a home. After all, if the foundation fails, so does everything above it. Yet the foundation is a part of home maintenance that’s easy to overlook. Identifying and fixing foundation issues is an important part of homeownership. Learn more about why problems develop, the appropriate times to schedule a foundation inspection, and how to buy a house that requires foundation repair.
What Causes Foundation Issues?
- Poor soil conditions: Soil swells and shrinks as the weather changes, rocking the foundation above it. Some soil types are more prone to this than others.
- Drainage problems: Heavy, oversaturated soil can press against foundation walls, eventually causing cracks and flooding.
- Poor construction techniques: If the builder skips soil testing or fails to take the necessary precautions based on the soil type, foundation issues become more likely.
When to Schedule a Home Foundation Inspection
How do you know it’s time to hire a professional to inspect your home foundation? Here are four key times when an inspection is recommended.
You’re Buying or Selling
During a pre-sale house inspection, the inspector looks for signs that the foundation is shifting or sinking. These observations may indicate the need for more thorough testing and analysis from a structural engineer. The buyer is not obligated to request a foundation inspection, and the seller doesn’t have to provide one, but the party most interested in having this information should pay to get it done.
An Emergency Occurs
If your home is subjected to an extreme event that could impact the foundation, it’s time to call a specialist. Failure to act could make the home unsafe or vulnerable to water and pest intrusion. Here are examples of emergencies warranting a foundation inspection:
- Earthquake
- Flood
- Sinkhole
- Mudslide
- Impact by a vehicle or other equipment
Foundation Issues are Common Across the Neighborhood
Have you heard about multiple neighbors having foundation trouble? It could be a neighborhood-wide problem, especially if you live in a planned community constructed by the same builder. A professional can determine whether your home sits on unstable soil or was constructed poorly and now needs foundation repair.
You Spot Physical Damage
Since it’s common for homes to settle and shift over time, you should always keep an eye out for visible damage. Some warning signs include:
- Wall, ceiling, or brickwork cracks measuring 1/8 inch or wider
- Uneven or sloping floors
- Difficult-to-open windows and doors
- Water seeping into the basement or crawlspace
- Walls separating from each other
- Bowing or bulging walls
- Separating joints
Buying a House with Foundation Issues
You’ve spent months, possibly longer, hunting for your dream home. Maybe you’ve even made an offer. But then the home inspection comes back with evidence of foundation issues. You may think it’s the end of the road, but that’s not always true. Here’s what to consider before buying a house with foundation issues.
Your Lender Will Have a Say
For you to get final approval on a government-backed mortgage, such as an FHA home loan or USDA home loan, the appraisal must show that the roof and foundation are in good condition. But discovering that the foundation needs repair should only delay, not stop, your purchase.
Conventional mortgages tend to focus on a home’s resale value more than its livability. As long as the seller agrees to repair foundation issues, closing should go forward once you have proof that the repair is complete. Alternatively, if you consent to cover the cost, your lender may require the money to be held in escrow until the repair is done.
Foundation Issues Don’t Have to be a Deal Breaker
Lenders are cautious about foundation issues, so you should be as well. If a home inspection uncovers a problem, don’t hesitate to contact a structural engineer for a repair estimate. With this information, you may be able to negotiate a discount with the seller.
Another option is to increase your down payment to satisfy the lender or proceed with an all-cash deal to remove the lender altogether. This only makes sense if you have enough capital and think you can recoup the foundation repair costs at resale.
A third option is to take out a government-backed rehabilitation loan. This provides funds for major repairs to make the home safer and more livable.
When to Walk Away
It’s heartbreaking to fall in love with a home that has serious foundation problems. But if the seller refuses to make repairs, the damage is too extensive, or you can’t wait for repairs to be completed, your best bet may be to walk away.
If your contract has a home inspection or appraisal contingency, your earnest money will be returned to you. But if you made a no-contingency offer, your deposit is probably forfeited. However, you may be able to get your money back if the seller knew about the problem and failed to disclose it. Proof of prior foundation repairs could be all the evidence you need. You may also have legal recourse against the seller or home inspector if you don’t learn of known foundation issues until after closing.
Get Pre-Approved for a Mortgage
The bottom line is you shouldn’t ignore foundation issues, no matter how minor they appear and how much you love the house you’re trying to buy. If it’s been a while since you started house hunting, you may need to redo your mortgage application before you make your next offer.
Turn to Financial Concepts Mortgage for competitive rates and a stress-free application process. We are Oklahoma’s premier mortgage lender, with more than 20 years of experience helping buyers finance their dream homes. As a locally owned mortgage bank, we provide in-house loan origination, processing, underwriting, and closing to keep your information private and secure. Call us today at (405) 722-5626 to speak directly with one of our loan officers. You can also begin your application online.