I’ve just had a house leveled to sell. The contractor is saying all piers need to be replaced because they’re cedar. The house is in a price range that will attract predominantly first-time home-buyers. Will a pier and beam house with cedar piers be approved for a first-time home buyer loan in Texas?
Ask the lender of the loan…
BUT, I would listen to the contractor, if it were me.
2 Likes
Need to be replaced vs must be replaced are two different things.
Do they need/must be replaced because of their current condition? Or due to some other regulation or requirement. Go back and ask the contractor to qualify his statement.
1 Like
Depending on the organization in Texas issuing the loan the answer is likely, “who the heck knows”. If the contractor is honest you could go with what they’re telling you, or just roll the dice that closing goes smoothly once you get a buyer.
We’ve seen more lenders getting squirrelly over little or mundane details this year. Plus there seem to be more ill defined government programs out there with requirements that are contradictory or don’t make sense. Plus the people processing the paperwork know even less than the political staffers who wrote it. I’ve heard of rotted exterior window trim being perceived as a major structural issue that disqualified a house from the a program.
Case in point Washington DC has a first time buyer program that specifies the home must be inspected by a “licensed home inspector,” who then has to fill out a form attesting to the soundness and safety of the structure. But DC doesn’t license home inspectors… Over the phone the DC office will say “thats a typo, just have the inspector fill it out and sign the legal document.” 
There are no hard and fast rules prohibiting specific pier types for a loan. As Larry stated you should ask the lender. However I would first ask the contractor who made that statement to provide you with actual details with links to why they are making that claim? Is it possible you might have misinterpreted what the contractor stated? Did the contractor specify they “need to be replaced” or did they recommend they be replaced?
Another consideration is the homeowner insurance market issues of late. Insurers are trying to find reasons not to insure homes and keep their exposure to losses lower. It would not surprise me if the contractor may have heard of something relating to that and is passing it along? A buyer who can’t obtain insurance is going to have a problem obtaining a loan for the home.
Cedar is a natural decay resistant wood. That only means it takes much longer to decay than other woods but even cedar can decay. Being built with cedar posts I expect your home to be an older one. Is it possible the contractor sees decay and/or other issues and is recommending their replacement to prevent sale issues?
1 Like
Thank you all for your insights. The “contractor” is a little man who doesn’t speak the same language as I and his assistant is his wife/translator. The home is old and small. I suspect and will ask the ‘contractor’ if his suggestion is a must or a need. I’ve been familiarizing myself with different loan program parameters and thinking this house may qualify for a loan but not a first time homebuyer program. The home was insurable in it’s unimproved (unlevel) condition. I am hoping the level home will be also. Thanks again for all the great input
It’s also a pretty soft wood so perhaps it’s not appropriate for that type of load. Just spitballing here.
1 Like
Also, contrary to popular belief, it is not termite repellent.
If they are present and hungry, they will eat it if they have to!!
I had a bunk of redwood 2x6x8’ that sat outside over the winter and carpenter ants got into them and ate all of the softwood out of several of the center boards. So I’m pretty sure that redwood is not termite resistant either.
1 Like