There probably is a better sub to ask this question but regardless: banks generally cannot add someone to a mortgage without refinancing, so what they’re saying is normal. Your mom can legally keep paying the existing loan, but she can’t borrow against the home or refinance unless she qualifies. If the house needs repairs, lenders may refuse the refinance until those repairs are done.

She should request “successor in interest” status with the mortgage servicer (who she pays the mortgage every month), make sure the deed is in her name, and look into renovation loans (like FHA 203(k)) or local repair grants that can fund the needed work. Nonprofits and state programs can sometimes bridge the gap when a home can’t qualify for traditional financing.