Roof Red Flags That Impact Mortgage Lending

1. Missing or Damaged Shingles

• Cracked, curled, or missing shingles signal age-related wear or storm damage.
• These flaws allow moisture intrusion, leading to mold, rot, and costly structural repairs.

1. Sagging Rooflines

• A visibly uneven or drooping roofline may indicate compromised support beams or foundation settling.
• This structural instability poses serious risk to both property value and loan security.

1. Patch Jobs & Mismatched Materials

• Quick fixes using different colors or textures often hide deeper issues.
• Appraisers and lenders view these as temporary solutions that may fail post-closing.

1. Weather-Related Damage

• Hail, wind, and hurricanes can loosen flashing, tear gutters, or weaken shingle integrity.
• Even if not immediately visible, this damage can lead to leaks months later.

1. Granule Loss on Asphalt Shingles

• Granule shedding is an early sign of material breakdown.
• It shortens roof lifespan and signals potential for premature failure.

1. Lack of Recent Professional Inspection

• Homes without a documented roof inspection raise uncertainty.
• Lenders prefer verified condition reports to reduce underwriting risk.

1. Drainage & Flashing Issues

• Poor drainage or corroded flashing can cause water pooling and interior damage.
• These are often overlooked but can drastically affect long-term property integrity.

Why It Matters for Lenders

• A compromised roof can depress appraisal value, skew the loan-to-value ratio, and increase default risk.
• Smart lenders integrate roof evaluations into underwriting to protect both borrower and portfolio.