Article in Homepower Magizine

Financing an off-grid home or property is not entirely different than financing a home in a typical subdivision. There are three major categories that apply to residential real estate financing—income, credit, and collateral.
Collateral is the most important factor in financing an off-grid home, and it is up to an appraiser to address the typical issues and evaluate the property’s features for potential underwriters. You’ll need to find an appraiser in your area who specializes in out-of-the-ordinary properties, with experience appraising off-grid properties.
Many off-grid homes are near other off-grid homes, which can be used for appraisal comparisons. Have the appraiser prepare an addendum to the property’s appraisal that details other nearby off-grid properties and their sales histories. This will help show underwriters that your property is not an anomaly for the area.
Your appraiser will not necessarily be bound by the normal rule of having to use sales comparables within five miles. The lending company Fannie Mae will allow greater distances as long as the appraiser is able to support the necessity for using a sales comparable outside normal guidelines. The appraiser may also search for older sales comparables of off-grid homes to support the value of the home. If you know of any off-grid homes in the area, let the appraiser know—sometimes sales of off-grid homes are private sales and do not show on the multiple listing system, which is how many appraisers find comparables.
Once an underwriter is able to see how the value of the property is supported with reasonable sales comparables, you will soon be enjoying your off-grid property or home.
Terry Phenicie • First Priority Financial