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Discussion Starter · #1 ·
So we've discussed here for quite some time building "earth-frindly homes".

Log cabins.

Monolithic domes.

Underground homes.

Straw bale homes.

Solar homes.

Homes made with re-cyclced tires, glass bottles, aluminum drink cans, etc.

Now, a straw in the ointment from, guess who? The bankers and mortgage lenders.

Its seems that in our new economic reality here in the United States, bankers and mortgage lends no longer will extend original home loans (construction) or refinance loans on existing homes if they are not "conventional".

A new Wall Street Journal article about this topic:

http://online.wsj.com/article/SB100...5071381513802938.html?mod=WSJ_hp_mostpop_read

So all power to you for building an "earth-frendly" home. Just don't expect going forward that you will be able to qualify for for a loan to build or re-finance the mortgage on one. It will be extremely difficult to sell your property one day if the buyer doesn't have 100% cash.

Our new normal it seems will be that we will have to buy the materials ourselves and build the home ourselves or lay out the construction money in cash ourselves.
 

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Sam Adams was right....
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I don't know about ya'll.. but I'm good with that...

sweat equity and owning outright are good things....
 

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Discussion Starter · #3 ·
I don't know about ya'll.. but I'm good with that...

sweat equity and owning outright are good things....
I agree with you.

But in this new lending climate, unfortunately, many who wanted to build a hoe of this type now won't be able to do so.
 

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that why i went the cash route on my home set up .. it completely bult underground along with haveing the off grid power system to power the house and green spetic system ..
 

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Christian mingler
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i guess if the house is inspected by a certified inspector, i can't understand why they couldn't loan you money on it, especially for log cabins and earth homes. Some of the others are kind of new wave and i can understand why they might be hesitant loaning money for them. The more that are built, the more likely they will start loaning money on them.
 

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Grand Poobah of Sarcasm
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Some of the pics I have seen of these alternative homes. It seems that some people are really desperate to incorporate trash into their new homes. I can understand lenders being hesitant. Aluminum cans, bottles and tires stashed all over in them.
 

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sic transit gloria mundi
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Simply a matter of marketability. Demand for many of these designs is so weak that, when a lender takes one back in foreclosure, they have to practically give them away. We haven't been able to get financing on geodesic domes for about five years now. Log homes located in urban/suburban areas are the same but there's no problem if they're located where you'd expect to find them (i.e. in the mountains).
 

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Just don't expect going forward that you will be able to qualify for for a loan to build or re-finance the mortgage on one. It will be extremely difficult to sell your property one day if the buyer doesn't have 100% cash.
Just went through this this summer. Nice berm house on 40 acres here - no way to get financing. Incidentally, financing is next to impossible to get on modular homes as well. Traditional stick built housing is about all you can finance in the post crash real estate market.
 

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The market on homes is narrow to begin with, so the situation is understandable.
If a person defaults on the loan trying to resell it is always hard when there are challanges to it's construction.
I have been in some structures personally that are stick ,and frankly very uncomfortable because the floor was very thin plywood particularly on the second story.
So some folks are not only cheap but careless.
There are places that there is no inspection ,you are basclly on your own unless there is an issue and some one is hurt and the athourities get involved.
Every time changes need to be made that were extraordenary we have to have an engineer approve the plans , California has some strict building codes that inspectors have to sign off on before the house is approved.
Some areas will not even let you do any thing out of the ordenary simply becuse it is a issue with the CC&Rs ,demanding uniformity and color cooredantion.
I really hate city , safety is one thing ,no argument there, but building the type of home I want is my business not my neighbor's business nor any one elses for that matter.
Rich people get away with any thing they want just paying off some official, or having buddies in city counsil .
enough said
 

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Not my concern....
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Just went through this this summer. Nice berm house on 40 acres here - no way to get financing. Incidentally, financing is next to impossible to get on modular homes as well. Traditional stick built housing is about all you can finance in the post crash real estate market.
Just went through that for my property....It had a 2 year old manufactured home on it and the first two mortgage brokers I went to dropped me. Through my Realtor,I was put in contact with a local bank that gave me a mortgage. Then the only one available had a 5 year balloon payment even with over 50% down. I will have it paid off well before then but it was all I could get.

It is a great property with 20 acres, 4 well built out buildings all on slabs, at least two natural springs fenced pastures and plenty of woods. It was on the market for over a year, several folks looked at it but I was the only one who made an offer due to the manufactured home.

It was the longest three months of my life jumping through all the hoops. It was hard but it can be done.
 

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Survivor
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There was a weird house on our street that sat for 3 years without a bite. The whole thing was shaped like a barn roof. Exterior walls are not vertical, and the 'siding' is shingles. The windows are vertical however, so that means they stick our funny at the top. It's the ugliest 2 story ever! The yard is small, and there's not one single redeeming thing about it. It's the house only the 'builder' could love, and that builder probably lived in it just fine. Problem was, no one else loved it.
So yeah, the banks have a point. and when we were home shopping, we hadta put teh nix on a lotta places we liked, cuz they were manu homes on basement with acrage, but no banks wants it. Even worse to get financed are actual moble homes.
 

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So choose a cob house for your 'earth friendly home'. If you cant afford to build one yourself then there is something wrong.
 
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