2nd Step – Loan Approval Details. If you have cash to build your home or you are an owner builder building your dome in stages as you can afford it, you can skip this step and proceed to step three.
Determine the loan amount a lender will loan to purchase land, prepare your site, install the driveway, install or hook up to utilities and construct your new home. This loan amount will determine what size home you can actually build.
About Financing- one of the biggest obstacles that clients looking to build any type of alternative housing is financing. Please read our financing overview which contains names to call for financing and check with local credit unions, the bank you use, and other lenders in the area. It takes a lot of footwork and patience to obtain financing on alternative type house which is what domes, log homes, A frames, earth bermed houses, etc. are considered.
- Show the lender our web site and show them the article about the two domes in USVirgin Islands going thru two category 5 hurricanes in 12 day period with no damage when area was destroyed.
- Show them web site article on the cooling costs for 34’ dome home which is below the 40’ info. (it even easier to heat a dome than to cool it because heat generated from clothes dryer, dish washer, sunlight, etc. does not need to be overcome to heat like it is to cool a house).
- Show the lender the web site article that has photos of five different 34’ domes and give that to the appraiser as well.
- Ask Ai for a document named panel composition and advantages of the Aidome and print out and give to each potential lender. Go over each advantage and explain why you want to build the dome.
- Unfortunately usually lenders want an appraisal of the building plans you will be building (and your plans have not been ordered or finished) and bid from your builder. For appraisal they want to see Aidomes that have sold in your area. Ask Ai to email you a drop box link which contains a sample set of 34’ plans with slab foundation and 18” stem wall to get the footer below the frost line and a sample set of Structural Calculations on a 40’ dome at 180 mph wind. If your area does not have a frost line, then ignore those design details….your plans would therefore be designed without the stem wall.
- Ai has sold over 800 kits in 47 states and 15 foreign areas. For a $100 fee we can research what Aidome owners are in your state and see if any of the domes have been sold close to your building site. This can take a week or two to call and follow up and compile. Will let you know when we have. However we doubt if any domes have sold that are close to your area. WHAT HAPPENS THEN IS THE APPRAISER HAS TO APPRAISE OTHER ALTERNATIVE TYPE HOUSES THAT HAVE SOLD IN THAT AREA or visit an Aidome that has not sold and also might be able to use conventional shaped house with similar 2 bedroom /2 bath layout…not sure what the appraiser will want to use to complete his appraisal. He can call here to get information.
How Much Can You Borrow? If you decide to pursue a mortgage route, you should know approximately what potential lenders will loan you. There are some basic rules of thumb that can help you in figuring your Maximum Mortgage Amount based on loan-to-value. A lender will only loan you a percentage of the value of your building site and your completed dome, expecting you to also contribute a percentage (usually 10% to 25% to 35%). Comparing the maximum amount a lender will loan to the total value of your land and home is referred to as loan-to-value ratio. Your contribution to the lender can be in the form of your equity in the land, available cash, and deposits on the Dome Building Kit.
If you will be financing, let your fingers do the walking as you travel the financing route. Compare lenders by asking them all the same set of questions over the phone. Please see page 3 in our Financing Booklet for the questions to ask. Talk with perspective lenders and determine the amount of cash down payment they will require for you to secure a loan for the New Home Budget you determined. On an approximate $200,000 build for the structure and land development, this could mean your contribution (equity in your land, cash & deposits on the kit) could be $20,000 to $50,000 to $70,000. The booklet gives creative ways to finance your new dome home; take out equity loan on current property or buildings or obtain a personal loan, etc.
FYI Mortgage lenders will require 10% to 35% cash down payment based on the finished price of the home.
For Mortgage Financing contact:
Your local Wells Fargo Bank and explain that their Tukwila, WA branch and their branch in their Sioux Falls, SD have issued financing for Aidome building kits and see if they are interested in reviewing your info for a loan.
A Construction Loan was issued by AG South Farm Credit, ACA in Laurens, SC for Ai dome home to be built in the area because the dome buyer had rural ag land. Their number is 864-984-3379.
As you go through this process, you may decide to down size the square footage home you initially considered. American Ingenuity has ten sizes of dome kits which when assembled result in 172 sq.ft. to 3,000 square foot home. To view regular and sale pricing on Tiny Dome Kits (172 sq.ft. to 1,278 sq.ft.), click on Tiny Homes. To view info on finished cost for dome homes, click on finished cost. To view stock plans for each size dome from 172 to 3,000 sq.ft, click on Stock Plans.
Keep in mind lenders may or may not take under consideration your equity in your land, when lending for the structure and land development. Therefore, if needing a loan to build it is wise not to invest all your liquid assets into the purchase of the property because a large cash down payment will be required on the home loan. Feel free to call us at 321-639-8777 for a friendly chat to clarify these items. None of our staff is on commission. Call to get straight answers to your questions from Glenda our dome expert.