Is Spray Foam Insulation a Hidden Obstacle for Homebuyers and Sellers?

Is Spray Foam Insulation a Hidden Obstacle for Homebuyers and Sellers?

Spray foam insulation has long been praised for its energy efficiency and ability to create an airtight seal, but it’s recently become a red flag for mortgage lenders. This innovative upgrade, often viewed as a way to add value, can surprisingly complicate the process of buying or selling a home.

For sellers, homes with spray foam insulation might face pushback from buyers who struggle to secure financing. Lenders are increasingly wary because the insulation adheres to structural elements like roof timbers, making inspections challenging. Hidden risks, such as trapped moisture or undetected decay, lead many lenders to classify these properties as high-risk.

Buyers, meanwhile, may find themselves navigating additional inspections or facing lender denials, even if they’re willing to take on the potential risks associated with spray foam.

What can homeowners do? Regular inspections, certified installations, and proactive communication with lenders can mitigate issues. If selling is in your near future, exploring alternative insulation options might save you from hurdles down the line.

This growing concern about spray foam insulation highlights how even well-intentioned upgrades can have unintended consequences. For a deeper dive into this topic, check out Davin Eberhardt’s article, Why Spray Foam Insulation Is Now a Red Flag for Lenders.