Ruidosian
New Member
Posts:6
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| 04 Jul 2013 09:41 PM |
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Hello again!
Today I am throwing out a problem that I did not expect at all.
I purchased 10 acres of land last year, owner financed to really good conditions.
Meanwhile I built a 2 story, 1800sqft passive solar off the grid home on it.
I installed a high end Outback solution that runs like a charm! :)
Since I did everything all by myself I was able to stay within my budget of about $30k.
But now I am running out of money soon, which I expected, to do the final work and details.
My thoughts were that I could easily re-finance since the value of home and property is about $180k and
I only want to finance about $80k to pay off the owner and credit cards.
Due to good credit and so on it wouldn't be a problem at all, IFFFFFFFF...
...the house was connected to the pubic power lines, means the grid.
I simply don't want to, because I don't need to.
It would cost me another $6k, which I probably could work into a re-financing, but the two most aggravating things are that
a) I don't friggn NEED the power company's electricity and
b) I don't want to look at the stupid power lines they would run to my house (underground would be triple as much).
Does anyone know a lender, that would be worth to talk to or have ideas, how I could get out of this misery?
I would hate to have to run the wires! Seriously!
They also said that, if there would be at least 3 comparable house that sold within the last 6 months it could be done as is, but heck; that's a catch 22!
Even IF there were that many houses that would have sold, they would have the same, unsolvable problem if they would have sold to someone that didn't have the cash to pay in full.
Then on the other hand; I would guess that people that build and live that way also want to stay in their house and didn't build to sell...
Input please! Every hint is welcome!!!
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jonr
Senior Member
Posts:5341
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| 04 Jul 2013 11:14 PM |
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If the bank's hands are tied, you might find some individual willing to do it at the right interest rate. 1/2 of value sounds reasonably secure. |
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FBBP
Veteran Member
Posts:1215
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| 05 Jul 2013 12:40 AM |
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Posted By Ruidosian on 04 Jul 2013 09:41 PM
Hello again!
Today I am throwing out a problem that I did not expect at all.
I purchased 10 acres of land last year, owner financed to really good conditions.
Meanwhile I built a 2 story, 1800sqft passive solar off the grid home on it.
I installed a high end Outback solution that runs like a charm! :)
Since I did everything all by myself I was able to stay within my budget of about $30k.
But now I am running out of money soon, which I expected, to do the final work and details.
My thoughts were that I could easily re-finance since the value of home and property is about $180k and
I only want to finance about $80k to pay off the owner and credit cards.
Due to good credit and so on it wouldn't be a problem at all, IFFFFFFFF...
...the house was connected to the pubic power lines, means the grid.
I simply don't want to, because I don't need to.
It would cost me another $6k, which I probably could work into a re-financing, but the two most aggravating things are that
a) I don't friggn NEED the power company's electricity and
b) I don't want to look at the stupid power lines they would run to my house (underground would be triple as much).
Does anyone know a lender, that would be worth to talk to or have ideas, how I could get out of this misery?
I would hate to have to run the wires! Seriously!
They also said that, if there would be at least 3 comparable house that sold within the last 6 months it could be done as is, but heck; that's a catch 22!
Even IF there were that many houses that would have sold, they would have the same, unsolvable problem if they would have sold to someone that didn't have the cash to pay in full.
Then on the other hand; I would guess that people that build and live that way also want to stay in their house and didn't build to sell...
Input please! Every hint is welcome!!!
Talk to the boys at Outback, they have probably run into this before and may have some answers. |
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FBBP
Veteran Member
Posts:1215
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| 05 Jul 2013 12:41 AM |
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Posted By FBBP on 05 Jul 2013 12:40 AM
Posted By Ruidosian on 04 Jul 2013 09:41 PM
Talk to the boys at Outback, they have probably run into this before and may have some answers.
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Lbear
Veteran Member
Posts:2740
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| 05 Jul 2013 04:54 AM |
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Banks have their rules to protect themselves. I would try and see if a different bank would work with you, if not, you are probably stuck playing by the banks rules. It's their money and their rules.
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bmancanfly
New Member
Posts:79
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| 05 Jul 2013 08:58 AM |
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You can get financing, but it's going to be at a higher interest rate (a minimum of 3% more, probably more).
If you are borrowing $100,000 3% additional on the interest rate is going to cost $3000 per year in additional interest payments - for the life of the loan.
Seems like it's worth it to pay the cost of connecting to the grid. Some times things are not fair - but that's life.
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bmancanfly
New Member
Posts:79
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| 05 Jul 2013 09:06 AM |
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BTW
The $6000 grid connections cost, financed into a 30yr mortgage, at 4% comes to $28.42 a month in additional mortgage payments (or $341 per year).
Seems like a no brainer to me.
Good luck. |
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jonr
Senior Member
Posts:5341
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| 05 Jul 2013 09:31 AM |
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If grid-tie is available, the utility serves as a great battery. I don't know how to make utility poles look good. I planted vines on mine which helps. An evergreen vine would have been better. Or maybe a plastic vine! |
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Robertson
New Member
Posts:58
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| 05 Jul 2013 02:09 PM |
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This is a longshot, but if you can pull it off, it would be awesome.
If your circumstances are moderate to lower income, the USDA has a home repair option (504?) that will finance repairs to an existing dwelling at a low rate, and occasionally even a small grant. They ONLY loan money to ppl that the banks do not like. They especially like to loan money to bring an existing home up to ENERGY standards.
Find your local USDA DIRECT office. Avoid any brokers or agents for USDA Guaranteed! Find your local office, but don't call them right away. Call some OTHER USDA direct offices in your state and pick their brains. Then you will know the ropes before getting a USDA councellor at your county office. There is lots of information on the Internet, too. Once again, learn the ropes first so you don't stick your foot in mouth from not understanding the rules.
Good luck. |
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joe.ami
Veteran Member
Posts:4377
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| 09 Jul 2013 09:13 AM |
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There are secured loans that are not mortgages. Try credit unions that do not have the same standards as banks. Perhaps you have a different security (i.e. stocks, bonds). As the others point out the cheapest money may come with wires attached.
Sometimes you can mitigate the cost of underground by digging your own trench and laying conduit.
Good Luck |
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Joe Hardin
www.amicontracting.com
We Dig Comfort!
www.doityourselfgeothermal.com
Dig Your Own Comfort! |
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