Finishing a basement

Q: I'd like to finish the brick basement of my 80 year-old home but don't know how to treat a moisture problem on the walls. I'm planning to properly grade the soil and walkways around the house but can't afford to waterproof from the outside. I don't have water leaks, but there is efflorescence and mildew in the basement. What can I apply to the brick? I'm planning to clean the walls to remove the old paint, then repoint the mortar joints before insulating and drywalling. I'd like to do all this right, so any advise would be appreciated.

A: Although your question is about a waterproofing product recommendation, the real issue involves dealing with drainage issues and eavestrough first. Reliably dry conditions are essential for any successful finished basement. Without that, you'll be paying thousands of dollars to create a mold hazard in your house. Not good. I'd even go so far as to recommend that you wait and watch your supposedly-dry basement for a year after attempting to eliminate moisture problems, just to make sure you actually have. If everything checks out, use sheets of rigid foam to insulate the walls, not stud frames with fiberglass. Foam is much better able to deal with small amounts of moisture if it does appear. Even a little bit of water causes big trouble in a stud frame wall.