Underground Home Loans

Underground home loans are much different than underwater home loans. Getting a loan for an underground, earth bermed or sheltered home can be a daunting experience especially when buying used.

How does one go about appraising an underground home or an earth sheltered home? Chances are there are no comparable homes in the neighborhood. Chances are the bank representative or mortgage agent will look at you with crossed eyes when you inquire about such financing.

This is especially true if you're buying an earth bermed or underground home directly from the seller. But, there are a few options you may want to consider when you decide to purchase and underground or earth sheltered home.

First, do a search in your state or even in other states to see what these types of houses are selling for, if even to get a ballpark figure. If buying new, then enlist the help of a real estate agent as they will most likely have some ideas on where to go for financing. Also a resource such as Lending Tree or Ditech are also resources that let the lenders compete for your business.

Another idea is to have builder experienced in underground or earth sheltered homes recommend financing. Or, some builders have even partnered up with financing companies, which makes it much easier and less hassle for their clients to get a loan. One resource is Daviscaves.com and another is Earthshelteredhousing.com.

And yet another option is to build your own underground home or earth sheltered house. There are underground home plans one can buy as well as books on the subject. Of course you may want to go the route of self-financing if the land and materials are cheap enough.

Since underground homes and earth sheltered houses are the ultimate in green homes, then getting an Energy Efficient Mortgage (EEM)is another route to go. Here are three government resources for an Energy Efficient Mortgage including the FHA, Home Energy Saver and EnergyStar.gov. Taking out an Energy Efficient Mortgage can help you switch to energy efficient appliances as well as those that conserve water, such as a tank-less water heater, low flush toilets and a water and energy efficient dishwasher.

According to Louis Wampler, the author of the book, Underground Homes, "We are still in the infancy stage in the development of underground homes. Such houses will generally become more acceptable with the passage of time. Technology on their construction will improve, and the construction costs will go down.

"If the construction costs on subterranean homes become considerably lower than on conventional homes, watch for a building boom underground, with money-lenders eager to lend mortgage money not only because the houses are being accepted by the public, but because they are practically indestructible."

Even though mortgage financing is harder to get now days in general it is still possible. Underground homes and those that are earth sheltered or bermed give homeowners energy savings that other traditional housing cannot. Both lenders and government takes this into account when one is applying for such a loan. So keep your head up if underground is where you want to be.