Using home loan to fund both house and yurt?

[JociJane]

We are ready to buy our first home and in addition, would like to own a yurt in a warm weather location to double as our vacation rental. Ok, how do we go about this? Can I take out a home loan and use a portion of it to buy the land in our warm destination and then use cash for the yurt? It might be a bit much to take on all at once but, I don’t see another option. Or if you should buy one or the other first with two separate loans?

[Jafo]

I would buy it in two separate loans. I wouldn't even mention the word yurt to the bank.

[Bob Rowlands]

"I wouldn't even mention the word yurt to the bank." LOL!!! That'd pretty much be stellar advice for most folks. ''

[[[,,,,start of meeting with your banker,,,]]]

"Hi Joe. **hand shake** How are you today?"

"Good Bob, and you?"

"Well I'm better than you look. **laffs both sides** Say, Joe, I was wondering if your Savings and Loan could consider loaning me about oh..say 40K to buy a yurt and build the platform under it."

"SURE! No sweat. That's a great idea. We'd be happy to work a deal with you on that. How soon would you need it?"


lol !!!!WAKE UP! IT'S A DREAM!!

[Rich Brereton]

If I were you I'd research a home equity line of credit or HELOC. You could buy your first home and then turn around and apply for a HELOC in order to finance the yurt.

I don't believe there's a way to apportion money from a home loan for anything but paying the price of the home plus any transaction costs.

[jeritchie]

There are third-party companies out there that will give you 'loans' for Yurt projects. These are not mortgages as regulated by the US Government. Essentially they are lease-to-own deals similar to a business buying a large piece of office equipment. Typically you will make payments for four years with a $1.00 or 10% buyout at the end. The actually terms will vary based on the project, company, credit-worthiness, etc. The interest rates will be much higher than a mortgage or home-equity loan, but the rates are much lower than a credit card.

I am guessing most of the larger Yurt companies have a third-party financing provider that they work with.

We use one. I know they haven't been successful with everyone but individuals and small-businesses have been able to get credit this way. They are very upfront that they are not necessarily the cheapest solution, but are still much better than 21% on a credit card.

Good Luck

jer

[JociJane]

Originally Posted by Rich Brereton

If I were you I'd research a home equity line of credit or HELOC. You could buy your first home and then turn around and apply for a HELOC in order to finance the yurt.

I don't believe there's a way to apportion money from a home loan for anything but paying the price of the home plus any transaction costs.

Oh thank you! I guessed it couldn’t have been so easy. I didn’t know if that had to be disclosed or could be written as an extension to your property or some other renovation.


Sent from my iPhone using Tapatalk

[JociJane]

Originally Posted by JociJane

Oh thank you! I guessed it couldn’t have been so easy. I didn’t know if that had to be disclosed or could be written as an extension to your property or some other renovation.


Sent from my iPhone using Tapatalk

I have read that you can find yurt or tiny Home specific lenders to loan you the money for both land and yurt. Has anyone used one of these with decent rates?


Sent from my iPhone using Tapatalk