It has been a long road but we are almost there!
Long story short:
Went to bank #1- they wanted 20% down they told us to go to another bank (#2)for the construction loan at 9.75% and then come back to them for long term financing.
That rate seemed high so we called around and finally found bank #3- they didn't want anything down and everything was great until the appraiser said that there was no way to appraise our plans b/c no other straw bale homes have been bought or sold in our county in the last four years. The bank freaked out and refused to loan us the money (even if we found a different appraiser).
Back to the phones....The Colorado Straw bale Association was trying to help us as much as they could. All the banks I called wanted 20% down and we were running out of time fast to get the house started and this summer.
Went back thru our notes and found bank #2 and decided that the construction loan rate of 9.75% for 9 months would be better than nothing and we'd have a much lower long term rate with bank #1.
So we call #2 and get approved for the money just like with #1 and #3 and get to the appraisal part and found an appraiser in Salt Lake that came down and got the job done!
We needed the appraisal to come in at $120,000 (including the land) and it came in at $146,000!!!!!!!!!
So we closed on a construction loan today!
Next we get zoning approval and building permits from the city and county and we hopefully break ground by the end of the month!!
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