[Strawbale] INfo needed: mortgage on off-the grid property?

[Sherwood Botsford]

Britt Pastor wrote:
> Hey all....
> Especially for upstate NY-ers, would appreciate some advice: I want to buy
> land in upstate NY to put a SB cottage on. Someone told me for land with an
> existing cabin that's off the grid (solar and wind power only...no
> electrical hook-ups) I can only get a loan for 1/3rd of the price. Is that
> true? Anyone know? Are there any banks/mortgage providers who actually are
> willing to fund sustainable properties just as they would a normal house and
> land?
>
> I'm just starting out with all this, so I know nothing. Appreciate the
> advice, and any leads on where to turn first.
>   
Banks tend to loan money only on sure things.  A house in Outer Suburbia 
is a commodity item.  If you default on the mortgage, the bank can sell 
the place easily.

A rural property is automatically harder to sell.  Here houses in the 
city are typicallly on the market for 30 days tops.  Rural properties 
can take a year to sell. Two reasons:
1.  Demand:  Fewer suppliers fewer buyers. 
2.  Location even more significant. 
3.  The land is more significant.
4.  'Improvements' need to be matched to buyer.
(1+1+1+1 =2 for sufficiently small values of 1)
E.g. A property with a barn and a shop, and an unheated storage building 
was put on the market for 700,000 here.  It was worth that for someone 
who wanted the house, barn, shop, and storage.  It sold for 400,000 
after two years to someone who didn't want all the outbuildings, and so 
wasn't willing to pay for them.

Shop for your mortgage.  Call a mortgage broker.  They will know the 
local market.  Call the real estate agents in the area where you are 
buying.  They may know who financed the previous owner.  If you own in 
the city, you may be able to finance the off-grid house with a mortgage 
on your present house at a cheaper rate.