Berm Or Earth Sheltered Homes Advantages And Disadvantages

Berm Or Earth Sheltered Homes Advantages And Disadvantages

What is a berm home?  As more and more of the community becomes concerned with polution and saving energy we are seeing the advent of solar, wind and geo powered homes.  We are also seeing "berm" homes become available.  

A "berm" home, is a home that is partially below ground, or that the ground has been built up around the exterior.  The benefits of berm homes include lower energy bills, more protection from natural elements and additional privacy.  

One of the detractors of a berm home is an inability to be financed with the lower down programs.  Twice in the last month we've been unable to finance these properties (with low down options) due to a lack of comparables in the area.  Most mortgages are sold to a loan servicer after closing.  So in addition to looking at the property condition, mortgage lenders will look at marketability, or the ability to re-sell the property. This is determined by the appraiser.  If there are no comparable properties, they have no method by which to determine marketability.  This trend should take care of itself as more of these homes come on the market but it is something to keep in mind if you're looking at purchasing one right now.  Most likely you'll have to do 20% down financing.  

Sarah Rowan Headshot
Phone: 970-397-5774
Dated: September 2nd 2014
Views: 471
About Sarah: Sarah was a licensed real estate agent for 10 years before transitioning into the mortgage industry ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

The Cost Of Waiting Excerpt From An Email - I was thinking about writing a
The Trend Is Not Your Friend - The Trend Is Not Your Friend - For
FHA Mortgage Limit Increases 2017 - FHA limit increases coming in!&
Interest Rates At Unanticipated Lows TAKE ADVANTAGE - Interest rates are at 7 month!!

Our Bloggers

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

9635 Maroon Circle, #100, Englewood, CO 80112
Fort Collins, CO