Property types do affect your loan options. At Skyridge Lending we offer loans for most property types including but not limited to off-grid, straw insulated, log homes, dome or geodesic, A-frame construction, Berm or underground homes, metal homes, mixed use with commercial and residential, manufactured and modular housing. We will briefly explain a little about the process here but as always, feel free to reach out to us for more information about your specific property type or what you are interested in.
The main thing with unique properties is to have comparable sales as similar as possible in the same area or within 40 to 50 miles of the subject property. Otherwise, the appraiser will use as close to the same types of properties as possible and the loan approval is done on a case-by-case basis. Sometimes the client will have to switch loan types or underwriters to get the right option for the property to be approved. At Skyridge Lending we look at the situation from a make sense perspective and work hard to get the client approved for the property type they have or want. Click here to compare options.
Off Grid – these can be tricky but certain loan types do allow for this type of financing as long as there is adequate heat and water sources. We’ve done several loans with water catchment or water delivery and storage systems, well water, wood burning stoves, and solar and/or wind for electricity. These are usually rural or remote rural properties.
Log Homes – some states like Colorado have many log homes and they aren’t considered to be that unique. Many lenders don’t lend on log homes. At Skyridge Lending we are very familiar with log homes and lend on them often.
Dome or Geodesic – we’ve done several of these in the past and in certain areas there can be similar homes that are able to help determine a value in comparable sales for the appraisal. In some cases there aren’t comps available and adjustments can be made in comparing these to standard construction. The people who live in these structures have commented that they are very energy efficient and have many advantages over standard construction.
A-Frame – these usually are built in areas with other similar type construction around and you can usually find at least one comparable sale that is recent. It is also common with this property type to use standard construction homes so these usually aren’t as hard of a unique property to finance.
Berm or underground homes – these our probably the toughest of the unique homes to finance. They are very energy efficient but can have problems with moisture and/or mold in certain areas of the Country. It is tough to find comparable sales for these homes and most programs do require at least one recent similar type of comparable sale so this is the main thing to check when looking to finance this property type.
Metal Homes – at times these aren’t as unique as they sound. It is becoming more common to have metal framing due to it being stronger, more durable, and less maintenance. Metal sided homes can also now look like traditional homes. Where this can get especially unique is when the property is a metal building that looks like a warehouse instead of a house. If it is being financed as a house it is best if it can still have the appearance of a house and then standard comparable sales can be used.
Mixed Use – this is an interesting category. We’ve seen many mixed-use properties including retail below residential in down town areas, farms with houses, houses with horse facilities, vineyards with houses, multiple houses, office downstairs with residences upstairs. We can lend on most of these properties but the terms are very dependent upon the deal specifics.
Manufactured – Manufactured is typically considered a single-wide or double-wide property and usually has HUD tags associated with it and were at one time registered with the DMV and moved to location as part of a trailer. These can be financed using FHA, VA, conventional, and in some cases USDA with newer units. In most cases the property will have to pass a structural engineers inspection and not have been moved once setup on a permanent foundation. They do have to include the land they are attached to in order to be done with a residential mortgage loan. These loans do have higher rates because the property type doesn’t hold value as long as standard construction type. Manufactured homes tend to stagnate in value and even decrease over the years because of the quality of construction. Modular homes on the other hand are typically built to international building standards. See more on those below.
Modular Homes – These are almost always built to international building standards for the past several years and are treated like a standard house. They hold value and appreciate similarly to other houses. In recent years the quality of several of these options is now higher than many site-built homes. They are built in a factory with high quality control procedures in place, then taken apart, shipped, and re-assembled on site. The time to build and move in with this type of option is much quicker in most cases than a standard build. Material and building quality on these options varies greatly depending on the manufacturer and builder.
Home of the 15-Day Close