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Financing Options for Cob House

 
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Hi friends,

I apologize if this has already been addressed in other threads. I looked around but didn't see anything directly answering my question so here it is...

Has anyone found a financing option to build a cob house other than a personal loan/credit cards/cash? My partner and I are looking to build our first home and have only heard "no" from all bank lenders who would normally offer construction/mortgage loans. This is because of the "unusual" nature of cob homes, as you all are familiar with. In an ideal world we would find some small company who likes the "unusual" and would help us fulfill this dream of ours, but my searching has come up empty. So you lovely people are my last stop!

Open to any and all advice
 
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We have choosen to purchase land and build our sandbag home in the White Mountains of Northern Arizona.  In the 2 small towns close to us are 2 small banks, not national ones, and both have said they will finance the build.  We are in Apache County, which welcomes people who want to build using alternative materials, and have already set in place the rules and regulations that need to be followed for each type of build.  I would suggest that you start looking for a small bank that is willing to invest in their community.  They do exist, but, like you, we heard a lot of no's before we heard a yes.
 
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I have not personally encountered this. I think a personal loan is the easiest option. Consumer loans are not a common way to pay for a home. However, there can definitely be certain circumstances where this is not only possible, but may even be the best option for you. In most cases, taking out a personal loan to buy a house is inconvenient. This is because personal or short term loans usually have much shorter repayment terms/plans.
 
pollinator
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Your not alone.

Building a Hobbit Home, went to the bank, looking for a builders load / mortgage... funding to help build this home.  Had the stamped engineered plans to show....  was told we don't know what it will look like, we don't know what it is worth, sorry we can't help you - from 2 different banks.

If they can't take it away from you and sell it for a profit, they are not interested.
Screenshot_20210807-160958.jpg
[Thumbnail for Screenshot_20210807-160958.jpg]
 
pollinator
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If they can't take it away from you and sell it for a profit, they are not interested.


I dont agree.
- They are lending you money to build an unusual house.
- If things go wrong they have the right to seek reimbursement
- That right usually means selling the property as it is.
- earth houses may not be as easy to sell as a more conventional house
- they do not need to pick it up and cart it away.
You have made a choice to build what they see as an unusual home, they are making a choice to stay away from financing it
because they are worried it would not sell if you cannot repay the loan..

Its straightforward to them.
 
Martin Williams
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Martin Williams wrote:I have not personally encountered this. I think a personal loan is the easiest option. Consumer loans are not a common way to pay for a home. However, there can definitely be certain circumstances where this is not only possible, but may even be the best option for you. You can check out https://fitmymoney.com/apps-like-moneylion/ to find the best conditions In most cases, taking out a personal loan to buy a house is inconvenient. This is because personal or short term loans usually have much shorter repayment terms/plans.


Although these tips are more suitable for an ordinary home.
 
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