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
Author:
Phone: 970-397-5774
Dated: September 2nd 2014
Views: 461
About Sarah: Sarah was a licensed real estate agent for 10 years before transitioning into the mortgage industry ...

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