Can I Get a Mortgage on a House With Code Violations In Massachusetts?

Published on June 19th, 2023

Purchasing a home with code violations with both local code and national housing codes and building codes can prove to be even more challenging and stressful, but is it possible?

With mortgage rates on the rise make are wondering if they can obtain a mortgage on a home with common code violations without being a real estate investor or paying cash for the property.

The Basics of Code Violations In Massachusetts

Building code violations and other code violations can be simple or complex, costing tens of thousands. It is possible to fix code violations and reduce the overall safety risk of the home and future fines you could be facing with some of the less complex violations.

Some of the most common violations in your city may include:

• Improper permitting

• Basement bedroom without egress windows

• Venting the bathroom fan into the attic

• Lack of permits for additions or expansions made to the home

• Current standards not being met with plumbing

When looking at a home with potential code violations, it's important to keep in mind that the seller may make the repairs, reduce to the overall purchase price of the property, or pay closing costs in some instances. In most cities, violations can be fixed prior to the sale of the property: for example, if you have an unpermitted deck at the property, the seller can go to town hall and retroactively apply for a permit.

It's vital that when purchasing a home that as many of the code violations are resolved at least two weeks prior to your purchase to ensure that when your loan officer goes for final mortgage approval, there are no red flags.

Finding Code Violations During Home Inspections In Massachusetts

One of the most essential steps as a buyer, either a personal buyer, a cash buyer, or a real estate investors, is to work with a trusted real estate agent in your search. Real estate agents generally know what to look out for when it comes to code violations and can help you negotiate with the property owner, which can be challenging in today's market.

An inspector will come out to the property to check for any safety issues in accordance with the local governments restrictions and codes. If the work that was done passes, a retroactive permit will be issued and the code violation removed from the record. During your home inspection, home inspectors will point out where potential code violations might be. In older houses, there will be more potential violations.

Getting a Mortgage on a House with Code Violations In Massachusetts

To get the best deal on a mortgage, you will need to determine what your current credit score is and save enough money for a down payment. Typically, when a mortgage is processed for buyers, a lender will run a title search on the property, pulling up liens and potential code violations that the town has placed against the title of the home. Keep in mind that violations can occur at any time during the entire process, and it's not uncommon for a last-minute violation to show up before closing.

Purchasing a house with code violations is possible depending on the severity of the violation and the type of loan you are applying for on various properties. Working with local professionals with vast real estate experience will go a long way toward your success.