Will Lenders Finance An Old House That Is Out Of Code?

[mboltm]

If the house appraises at value and passes inspection you are good to go, It is not the inspectors nor appraisers job to check codes, as stated above, most houses built 5-19 years ago do not meet todays codes. Good luck

[Johnny Dangerr]

Cash is King. House behind me is a hot mess. May make a new offer...

[Kingfisher789]

It’s not your problem for buyer to bring their money to close. Bless your sale.

[Gumbo Man]

Thanks for all of the valuable info guys.

[W E H]

I buy houses all the time. Some for cash, some through banks, some with investor money. . I’ve never had an inspection and I’ve never had a bank or investor tell me no. Some are vacant and haven’t been lived in in years or are in various states of remodel or disrepair. Most banks / investors just care if the collateral and debt to income ratio is enough to service the loan.

[Fooser]

Almost every house built 10yrs ago is now out of code, based on 2022 building codes. I built a home that took a few years to complete and the inspector passed it even though I didn't meet current building codes. He said i only had to meet the building code from the year of my permit.

In my case, arc fault breakers are now required in all living areas, where as building codes for the year of my permit only required them in the bedrooms.

Anyways, like everyone mentioned… banks lend based on appraised value and the buyers income to debt ratio.

[Mtltx]

I don't think banks care one way or the other what the inspection reveals. The appraisal will tell them what they need to know and then lend from there.

[Passafist]

Hud, VA,conventional all have different requirements some will loan on it others won’t