Conventional loan and surface mold

1 Reply

Recently looked at an off market deal that had surface mold on the banisters. This house has been unoccupied for a year and still has some belongings inside. Would the banks want the mold and belongings removed before they fiananced the deal, we are looking at a conventional loan with 20% down, priced around 105-120,000.

@Jonathan Smith

The appraiser will flag it and it won't get past the underwriter.

They'll make the owners remove it. If the it's on the walls, they'll make them remove the mold and patch the walls.

If the owners refuse to do the environmental clean up, the underwriters won't approve it.