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Yes. Water can penetrate through a concrete foundation wall. This can happen whether or not you have cracks, as concrete is a porous material. You’ll want to take steps to waterproof your basement or crawl space.

You can buy a home with foundation issues, but understanding the extent of the problem and what solution you need is critical. If you learn that a home you’re trying to buy has a foundation problem, it’s not necessarily a deal breaker, but you should have a professional assess the issue to see how severe it is and know when to walk away from a foundation problem. Foundation issues can necessitate simple and affordable solutions or complex work that costs thousands. 

Most single-story homes don't have foundations strong enough to support a second story, but they can be reinforced for an addition. A structural engineer can assess your foundation and what needs to be done to get it ready. They'll look at any cracks or unevenness in your current foundation and consider any special framing or beams your home needs, especially if it’s in a high-wind or hurricane area.

“To support a second story, many structural engineers will require that you install additional concrete piers in the crawlspace,” says Tschudi. “This involves hand excavating, pouring a large concrete footing—usually with specially coated rebar—and then building concrete piers right up to the girders.”

Yes, you can live with a cracked foundation—in fact, most people do. Virtually all foundations crack from normal settlement, and while settling cracks benefit from sealing to prevent water and moisture intrusion, most aren’t an issue. If you have structural cracks in your foundation, it might be safe to live in your home for some time, but you should address them immediately to prevent structure collapse and major property damage.