Can You Get A Mortgage On A House With Asbestos

Published on August 26th, 2022

Figuring out what type of mortgage you will apply for when buying a home can be challenging. You might get mortgage advice from friends, family, and mortgage lenders that all seem contradictory, especially if the home you are looking to buy poses a significant health risk and contains asbestos.

Asbestos in a home will affect the overall market value, your chances of getting sick, and what mortgages you will be eligible to apply for, no matter your credit score. Asbestos in homes creates a significant risk for you as a homeowner and for banks that provide mortgage services.

So, if the home you’re looking at purchasing has asbestos siding, an asbestos roof, or asbestos present somewhere else throughout the home, will you be able to get a mortgage approved? Throughout this article, we will discuss what the presence of asbestos can mean for you as a hopeful homeowner, mortgage advice for working with both private mortgage brokers and big banks, and what owning a home with asbestos means for you in the future.

What Are the Health Risks of Having a Home with Asbestos?

Owning a home with traces of asbestos can be damaging to your wallet and your health. Simply put, asbestos is dangerous in some cases and causes minimal risk in others.

The EPA puts it best when they say, 

“Asbestos that is in good condition and left undisturbed is unlikely to present a health risk. The risks from asbestos occur when it is damaged or disturbed, where asbestos fibers become airborne and can be inhaled. Managing asbestos in place and maintaining it in good repair is often the best approach.”

If the property you are interested in has a major asbestos problem, some of the health risks you would need to accept liability for include lung cancer and other types of cancer, including colon cancer. 

When looking to purchase a home with asbestos present, you should run a risk assessment so that your mortgage advisors and real estate agent can give you tailored advice on how to proceed at your own risk with the purchase of the property. After listening to all the advisors on what you should do and getting professional advice from a specialist contractor, you should feel comfortable in your decision to move forward or to continue your home search.

Can Asbestos Be Removed?

Depending on where you live, what the local authority has for rules in place regarding asbestos removal in residences, and how much asbestos is discovered in your initial investigation, having this toxic substance removed by a licensed professional might be a smart move.

If you plan to do any renovation projects to the asbestos property, you might disturb it, leading to health issues - it’s best to tackle this head-on with professionals trained and equipped to do so. Detecting asbestos is the first and most important step. Asbestos is found in many common building materials, including:

•  asbestos roof tiles

• spray coatings on ceilings and beams

• loose fill insulation in your walls

• partition walls

• asbestos cement water tanks

• some older vinyl flooring

• other building material

• asbestos siding

Getting a loan on a property that contains asbestos will be challenging but not impossible. Real estate agents in your area will be able to point you in the right direction and connect you with a mortgage introducer who can provide mortgage advice on obtaining an asbestos mortgage.

Assuming the home you want to purchase is in overall good condition without cracking, peeling, or flaking paint that contains asbestos, you will have a good chance of mortgage approval. 

However, if the property is damaged with an immediate health risk due to asbestos, your mortgage adviser will let you know your likelihood of having a conventional mortgage declined due to not meeting lender criteria. The types of mortgages this might include are:

• FHA Loan

• Conventional Loans

• Other Government backed loans like VA loans

 If your home can’t qualify for a conventional after repairs, the overall property value will no longer meet your offer price on the home, thus disqualifying it from a mortgage loan. What then?

There are specific and targeted asbestos mortgage options available through an exclusive mortgage expert. 

There are specific and targeted asbestos mortgage options available through an exclusive mortgage expert. Your mortgage broker might suggest that you apply for one of the following types of mortgages:

• A mortgage provider that specializes in rehabilitation mortgages

• Selecting a mortgage online from a bigger bank, like Metro Bank that accept properties with asbestos

• Mortgage Online LTD

If securing a mortgage deal proves to be challenging through the above-mentioned options, try looking into a specialist finance expert. This expert will take a deep dive into your mortgage application, your approximate annual income, run a credit report, suggest a credit crunch, and see where improvements can be made to increase your chances of bank finance on asbestos properties.

If you want to get a mortgage on a home with an existing asbestos problem, it might be an uphill battle, but it can be accomplished. While you might not get a typical conventional loan, there are plenty of loan options available on the market today. All you need is someone to guide you in the right direction.

For more information on buying or selling a home with existing issues, please follow our blog.