Can I Buy a House with a Bad Roof?

It can be a frustrating experience. You’ve been looking all over Venice for the perfect home. Finally you find it – the ideal floorplan, a neighborhood you love, and within your price range. But on inspection day, you get an unexpected piece of bad news – the house has a bad roof.

Is a roof which needs repair worth giving up the home over? Maybe not – but there are some hurdles you will need to get over.  If you want to purchase a home with a bad roof, here are your options.

Mortgage Requirements

When you are purchasing a home, most mortgage companies will require that the roof has at least 3 years of useful life remaining. This is determined by the home inspector or a roof inspector brought in during the inspection period. If you are obtaining an FHA loan, you may be required to get a 4-point inspection which will address the age of the roof.

If you cannot get a certification from a professional that the roof is adequate and meets the mortgage company’s requirements, the mortgage approval may be in danger. You may wonder why they would care, but you need to remember that the mortgage company is loaning you a lot of money – and their guarantee of payment is the house itself. If the roof fails or leaks, the house structure and material elements could be compromised, greatly affecting the integrity and value of the home.

You may also find that obtaining an affordable insurance policy is nearly impossible if the roof is nearing its end of life. An insurance binder is necessary in order to secure the mortgage and close on the property.

Bad Roof? You Have Options

Your first line of defense may be to speak with the seller of the property. If you can renegotiate the sales price to reflect a new roof, they may be willing to install the new roof before closing. Typically, the sales price is increased by the price of the roof, so you need to be sure that the home will still appraise for the increased sales price, but a new roof ROI is generally close to 100%.

Should you choose to look into this option, the owner may either pay for the roof prior to closing, or can ask the roofer if they are willing to be paid out of the proceeds of the closing.

Some sellers may not have the financial ability to put a new roof on the home. If that is the case, you can ask your mortgage company if they have any programs which will allow you to purchase the home as-is, and install a new proof within 90 days of purchase. You may also qualify for a home renovation loan, which effectively allows for the same thing. There are also insurance companies who will provide coverage for an initial period at a higher rate, but lower the premium once the structure has been replaced and inspected.

If You are Buying Cash

If you are purchasing a home with cash and do not require a mortgage, you are free to purchase a home with a bad roofing structure. Insurance coverage is only required when a home is federally secured by a mortgage. Therefore you can purchase the home, fix the roof, and then obtain insurance if you wish to do so.

If you need help with a Venice home sale, call Kingdom Roofing. We are happy to work with you to find a solution to allow you to purchase the home of your dreams.