An Alternative Approach To Financing
If you want to buy or refinance a unique home like an Earth Shelter, you’re probably going to be denied by most lenders, but don’t give up. It is possible to finance your energy-efficient dream home with an organic outdoor garden and living spaces nested inside materials such as earth – an alternative approach is key!
You can apply with your bank or credit union for help but most likely they won’t fund a mortgage for unique homes, for the reasons already mentioned above. If they do provide mortgages for unique homes, the interest rate will usually be higher and the mortgage will have an adjustable rate which runs the risk of a higher payment in the future.
Problems With Hard Money Lending
“Hard Money” lending is another option you can try. A Hard Money lender is a non-bank mortgage lender that can approve loans on unique properties. The problem with Hard Money lenders is that their interest rates are even higher than banks and credit unions. Plus, you need to watch out for the fine print buried in dozens of pages of mortgage documents. Hard Money lenders are notorious for non-standard mortgage documents that can trap you in a mortgage that will not be affordable for the long term. The fine print may include a balloon payment, which means that the entire mortgage balance has to be paid off within just a few years after you get the loan.
Creative Financing With HomePromise Corporation
To sum up, most lenders will always be nervous about Earth Shelter home lending because unique homes are not common. But, lenders like HomePromise will look at creative ways to ensure you get the mortgage you need to buy or refinance the Earth Sheltered, Earthship, Dome, Grain Silo, Berm, or Log Home of your dreams – and you can be confident the mortgage you get won’t hurt you in the long run.