Comments on: No home loan with no utilities

By: Ross

Ross — Fri, 19 Jun 2009 14:29:35 +0000

We are in the process of buying a cabin that is off grid. The best option is to get a “portfolio” loan which is investor back and not backed by Freddie/Fanny Mae. They do not have to follow the strict guidelines as the big banks. they lend based on business case. With that said your down/ltv may be up to 40% opposed to the usual 20% or less. The interest rate is the same as a normal loan. Call local borkers and ask for someone who does a portfolio loan.

By: Jedon Thompson

Jedon Thompson — Wed, 17 Jun 2009 01:02:16 +0000

We are very close to getting our final from the county for our off-grid house on 97 acres no too far from Hopland, it’s a few hours east up in the foothills. We are having the same issues getting comps and a loan so if you have had any luck please let me know! Right now we have a hard money construction loan.

By: Marie

Marie — Sun, 17 May 2009 13:54:16 +0000

For what it’s worth, we have the same problem in Canada. I just wrote a few nasty letters about the environmental impact of CIBC. (They still won’t give us a mortgage, though. Go figure.)

By: Brenda Reed

Brenda Reed — Sat, 16 May 2009 01:59:16 +0000

Thank you Selina for posting. This is confirmation that this oversight needs to be addressed. Living sustainably and renewably is a benefit to us and to the rest of the world.

By: Brenda Reed

Brenda Reed — Sat, 16 May 2009 01:55:48 +0000

Hi Kathleen,
A sub-prime at only 1% higher would be acceptable to us, but it still seems very unfair considering that we are not asking for money to refi the land, that’s already paid off, we are asking to refi the house. I like your attitude that eventually they will figure out that its their power that will go out, not ours. The sad thing is that lenders think that off-grid is a risk (which is how they justify loaning at a higher rate) and my power is more reliable than people who are dependent on the grid. I’ll check out Northwest Farm Credit Services. Thanks for responding.

By: Doug smith

Doug smith — Wed, 13 May 2009 23:34:03 +0000

I am a former Mortgage broker of 22 years. These kinds of loans are difficult because the secondary market does not want to buy them. However, there are a few places to try. Call some Mortgage Brokers or small banks in Santa Rosa and see if they know how to do USDA(US Dept of Agriculture) rural loans. The USDA insures rural loans so they are easy to sell. Farm Credit is also a good place to start but they are kind of strict. They are also located by region and are easy to find on the web. Sub prime lenders are all out of business so thats no longer an option. There are local investors in most areas that will make loans at a higher interest rate and low loan to value. They are called D paper or hard money lenders. You can find them on the web or the phone book. Use as a last resort. Good luck!

By: Selina Hochertz

Selina Hochertz — Tue, 12 May 2009 18:45:24 +0000

I am so glad to read your posting. I am so frusted trying to finance my mortgage, well, septic and solar panels. The banks in the Upper Peninsula of Michigan are not helpful. I am going to try Northwest Farm Credit Services. Anyone can post a copmment if they know of a bank that finances Off-Grid Homes.

By: Brenda Reed

Brenda Reed — Mon, 04 May 2009 01:44:23 +0000

Wabder, Thanks for your suggestion, unfortunately we don’t have time for this lengthy process. It does need to be done though.

By: Kathleen Czech

Kathleen Czech — Sun, 03 May 2009 14:43:31 +0000

We ran into the same problem 4 years ago when trying to refinance our owner built solar home here in Montana. Our original lender apparently did not notice that we were a solar home? Though they would only loan on 10 of our 40 acres. Prior to that we had no mortgage. When refinancing to drill a well and finish the place we ran right into the alternative energy issue. We also have a composting toilet or two but that did not seem to bother anyone? We eventually went with a mortgage through Northwest Farm Credit Services (I think that is the name). They two had issues with the solar but theirs turned out (in the end) to be the need for us to have adequate back up power in case our solar failed (laughing). We have plenty of generator power I just did not realize they wanted that information. Thus we ended up in the “sub-prime” category with a 1% higher interest rate and, yes, we are happy to have gotten it. Eventually the world will figure out that it is “their” power that goes out not ours and things will change. Kathleen

By: wabder

wabder — Thu, 30 Apr 2009 18:26:21 +0000

Yes, you are the front runners. I suggest you talk to the Obama administration people that are giving out the loans and your senators. See if you can get some mortgages added that encourage solar design under the green designation. Since they are passing out mortgage money with stipulations anyway, this could be another catagory. If you get your senator on board and it is a green project there is a good likely of getting it passed.