Loan Appraisal/Polybeutylene Pipes

Rebel 3

Senior Member
Thread starter #1
We found a house we would like to buy. The only problem is it has polybeutylene pipes. The seller is willing to pay at closing for the repiping job, but not before because he is afraid something will fall through with the closing. We are either going with a conventional or USDA loan. My mortgage person said you can not buy a house anymore without repiping it first because the loan appraisers always require it. My realtor says she does not think this is true because she has sold houses last year with it. I asked my mortgage person to double check. He came back later and emailed me that the under writer has told him it would have to be replace "if" the loan appraiser requires it. My question is, are loan appraisers now requiring polybeutylene pipes to be replaced before closing on a conventional or USDA loan? I want to get this figured out, so we can sign a contract this week and get on with it.
 

sinclair1

Senior Member
#2
I buy them as investments, not sure about the loans because I always repipe before selling. I am doing one now. Just be careful because if its a two story theres a good chance the walls will need opened up in a few places. I would made sure they cover some repainting and a sheetrock job that is to your liking. I would also watch they don't use adapters anywhere, I have seen pex used up to the point where it was going to require a lot of work around the tub and they just switched it where the inspector would see.
 

merc123

Senior Member
#3
From my own experiences with house buying. If this house has constant roadblocks you have to overcome to buy, just walk away from it.

One I was looking to buy had many red flags and we got to the closeing table before I had to walk away for good.
 

skiff23

Senior Member
#4
It may be possible for the seller to pay for it and Escrow the repair money at closing and the attorney hold the repair money until the repairs are complete. This needs to be addressed with the attorney ahead of time. Some appraisers are ok doing this and some are not.
 

K80

Senior Member
#5
Typically making requirements for loans is not within the scope of work for an appraisal unless there is damage. The appraiser may make a recomendation or a disclosure of items of interest and possibly suggest a home inspection. It is then up to the loan officer and underwriter to use the information reported by the appraiser in their risk management decisions. Many folks use the appraiser as their scapegoat... The customer is more likely to go back to the same loan officer on another property if "the appraiser kills the deal" than if its the loan officer shooting them down.
 
Last edited:
#6
Forget what the loan officer or processor is saying, it iisn't true. As long as the poly isn't leaking, appraiser could care less.
Your agent is right. Also, Millwood plumbing in Canton is great at replacement.
 

Rebel 3

Senior Member
Thread starter #7
Forget what the loan officer or processor is saying, it iisn't true. As long as the poly isn't leaking, appraiser could care less.
Your agent is right. Also, Millwood plumbing in Canton is great at replacement.
I talked to three appraisers today on the phone. All of them said basically the same as you. One was even a real estate broker. They all said if is isn't leaking and sanitary it was not an issued for them, and they have never heard of other appraisers making an issue about it. Two of them said they don't even look at what type of pipes are in the home. I was not able to get in touch with the mortgage company. I guess they were closed today for the holiday.
 
#8
I talked to three appraisers today on the phone. All of them said basically the same as you. One was even a real estate broker. They all said if is isn't leaking and sanitary it was not an issued for them, and they have never heard of other appraisers making an issue about it. Two of them said they don't even look at what type of pipes are in the home. I was not able to get in touch with the mortgage company. I guess they were closed today for the holiday.
19 yrs experience.
 
Top