Foam insulation injected into walls, roof rafters, and floor joists has been praised for its excellent insulation properties. However, home inspectors and mortgage lenders are raising concerns about hidden damage that could be caused by improper insulation.
An airtight seal with foam insulation
Batting or blown cellulose insulation in walls, between roof rafters, and between floor joists leaves small gaps around the edges and doesn’t fill small, tight spaces. Cumulative air loss through those small gaps can result.
Spray foam solves this gap problem when injected into walls, flooring, and roof decking cavities. The foam expands to fill the space between wood beams, including notches, decking cutouts, and every space, no matter how small. It then hardens. The result is a virtually airtight seal that stops all air loss.
That all sounds good, but in recent years, concerns have surfaced.
Moisture damage
Among the concerns that have arisen are that improperly installed foam insulation could trap moisture against wood beams in attics with insufficient circulation and contribute to condensation buildup. Over time, mold and potential structural damage could result. If applied over certain plumbing elements, foam insulation could conceal leak damage that grows over time when left unaddressed. Even if no damage occurs, foam makes it difficult to inspect the condition of some key structural and plumbing elements when it’s time to sell a home.
Lender reluctance
Mortgage lenders scrutinize foam insulation when buyers apply for a loan. If the lender-required inspector cannot adequately view the structure or plumbing components, the lender may refuse to lend against the home for fear of potential unseen damage.
Solutions for such a situation include:
- The seller may have to remove the foam insulation in the area of concern targeted by the inspector and lender. This could be expensive and require replacing the insulation with an alternate type.
- The seller may have to make a price concession.
- The buyer may not be able to get a traditional loan and may need to secure a bridge loan with flexible terms to buy the property, have the insulation replaced, and then get a final mortgage on the property that pays back the bridge. This could reduce the number of willing buyers.
Related – Save Money With Improved Insulation