When it comes to mortgages, there are a few things that can make a house uninhabitable. One of the most common is if the property is in disrepair. This could mean anything from a leaking roof to Foundation problems. If the repairs needed are too extensive, then the bank may deem the property uninhabitable and refuse to finance it.
Another reason a house may be considered uninhabitable is if it doesn’t have access to basic utilities like water and electricity. This typically happens with foreclosures or abandoned properties. Even if the utilities are reconnected, banks may still consider the property inhabitable due to past non-payment.
Lastly, any homes that have significant health and safety hazards may also be deemed uninhabitable for financing purposes. Things like mold, asbestos, or lead paint can all make a home unsafe and unsellable. If a home inspector finds any of these issues, it’s likely that the bank will not finance the mortgage.
If you’re thinking about buying a fixer-upper or an older home, just be aware that there’s a chance your mortgage could be denied due to habitability issues. It’s always best to get a professional inspection before making an offer on any property. That way, you can know for sure whether or not your dream home is actually financeable.