Why Is Unique Home Financing So Difficult?

Unique homes come in all shapes and sizes. For example, Earthships are made from recycled materials. Berms and Earth Shelters along with Earth Ships are built to harness the natural warmth of the earth and light from the sun. Whether it’s the lure of an ancient design preference or it’s living within an eco-friendly environment, unique homes like these are growing in popularity.

Many unique homes are designed with solar power and remain energy efficient throughout the year. Plus, Berm homes and Earth Shelters are disaster-resistant.

When fed up with Ranch and Cape Cod style homes, many homebuyers find unique homes like these an attractive option over “cookie-cutter” houses.

But although they are desirable, finding the financing options to build a Dome, Log, Berm or Earth Shelter home is difficult.  Most lenders want to make mortgages for homes that are very common and typical for an area.  Unique homes scare them away!

Why Lenders Don’t Approve Financing For Unique Homes

Most banks and lenders are unwilling to lend money since there are often no comparable sales in the area. A lack of similar homes nearby that were sold in the last 12 months make the appraisal process hard. Since finding three or more similar unique properties in the same area is almost impossible, lenders are less confident.

Another reason why most lenders fear unique home financing is because these properties are hard to sell. Since unique home mortgages are not easy to obtain, many buyers opt-in for conventional homes.

Lenders like HomePromise will look at creative ways to ensure you get the financing you need to buy or refinance the unique home of your dreams while being confident that the mortgage you get won’t hurt in the long run.

Why Lenders Don’t Approve Financing For Unique Homes

Most banks and lenders are unwilling to lend money since there are most likely no comparable sales in the area. A lack of similar homes nearby that were sold in the last 12 months make the appraisal process hard. Since finding three or more similar unique properties in the same area is almost impossible, lenders are less confident.

Another reason why most lenders fear unique home financing is because these properties are hard to sell. Since unique home mortgages are not easy to obtain, many buyers opt-in for conventional homes.

Lenders like HomePromise will look at creative ways to ensure you get the financing you need to buy or refinance the unique home of your dreams while being confident that the mortgage you get won’t hurt in the long run.