Question:

we are looking for a house and were told that we won't be able to get a mortgage on a house with insulbrick siding. What is it and why is it so bad?

Answer:

The construction part of this question may best be answered by Ren Molnar, but, since it does relate to mortgages, I will give it my best shot.
Insulbrick is a paper based siding material with an ashpalt coating made to look like real brick from a distance. Because it is coated with asphalt, it does not breathe very well and acts as a vapour barrier on the outside of the building. A properly installed vapour barrier is on the warm side of the insulation and prevents moisture from entering the wall cavity and condensing to water when it reaches the cold. With insulbrick siding, the moisture hits the cold vapour barrier (insulbrick) condenses and/or freezes and dampens the wood underneath. Over time the wood can rot causing structural problems to the building. That is why most lenders refuse to mortgage them.
In reality, these homes ARE mortgageable but may require an engineer to certify their soundness. You may also want to consider purchase plus improvement mortgage financing to replace the siding with a more conventional one. John Lozinski

Answered By: John Lozinski

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