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I have an accepted offer on a conventional contract but the house appears to be uninsurable.

I found a great house in the perfect location. They were accepting cash or conventional offers. I made an offer of exactly what they were asking for and not asking for any closing costs. After an inspection, I ran into some issues that worried about my ability to close. The first issue was the permits for the roof were back in 96. While the roof didn't appear to be that old, we had to ask the seller for documentation proving the roof age. They got documents stating the roof was replaced 6 years ago. Great.

An inspection of the house showed cloth wiring (it does have a 200amp box and circuit breakers though). I know this limits insurance options, but cloth wiring doesn't completely rule you out. What does rule you out, however, is an open-ground. The house has 3 prong outlets, but they are not grounded.

The inspection report also showed galvanized pipes. It was noted there were no signs of present or past leaks and water pressure was great, but this worried me as well.

Essentially, I'm looking at an uninsurable house, which causes issues for financing.

All of these issues being noted probably sound like a nightmare, but truth be told the house is everything I want issues aside. Concrete block on a concrete pad, relatively new roof, and the location is unbelievable. And to top it off, the house is well below my borrowing power while also being small. Repiping the house isn't a huge concern cost-wise, I know it won't be cheap, but there are only two sinks, a toilet, and a bathtub in the house and they're all in a straight shot only separated by one wall. The house is only 1075 heated/cooled sqft so I'm not worried about paying for a rewire asap either. I can definitely finance them after closing and have no debt issues in my personal finances.

Is my only option from here to ask the seller to get the house to an insurable state or walk away? My only other question is, who's at fault here? Before inspections, I was only anticipating having to negotiate or flat-out pay for new windows before closing, but these are big ticket items.

submitted by /u/Dababolical
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source https://www.reddit.com/r/RealEstate/comments/k3qu8e/i_have_an_accepted_offer_on_a_conventional/
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