EIFS should be separated from the ground by at least 8", three-coat stucco by at least 2". Otherwise, water will tend to be absorbed into the finish and the structure feeding mould and rot.

"I'm dreaming of a ....."

The risk is even greater where snow piles up around the foundation for part of the year.

Does it make a difference - we hired someone to repair some parts of stucco earlier this year and they seemed to put cement under stucco. Not sure if there is cement all around the house under stucco, but if it was, would it make this more water proof - at least for the internal structure of the house?

"Does it make a difference - we hired someone to repair some parts of stucco earlier this year and they seemed to put cement under stucco."

Nope, concrete is not waterproof.

This video details what can happen when stucco is buried in soil around the foundation and even into concrete.

OK, thank you for your responses everyone! So no grading job for this house? What would be an alternative?

Why, after 50 or 60 years, do you think the site needs re-grading, pushing even more soil up against a vulnerable stucco wall?