If you are looking to buy a yurt, you will need to find ways of financing it. So, can you get a mortgage on a yurt?
Can you get a mortgage on a yurt?
It’s almost impossible to get a mortgage on a yurt. The reason behind this is that most lenders don’t recognize yurts as traditional homes. However, there are other loan options out there if you are looking to buy a yurt. They include business loans, personal loans, land loans, and seller financing.
Yurts provide one of the best options if you are looking for a budget-friendly means of building a house. They are much cheaper to build compared to a traditional house of a similar size.
But, as much as yurts are highly affordable compared to a traditional house, you will still need to spend some money building one.
On average, a decent yurt will cost you around $15,000 or even more, depending on the size that you want.
And, unless you have this money saved somewhere, you will need to explore other ways of financing your yurt. And this brings us to the question, can you get a mortgage on a yurt?
Getting A Mortgage On A Yurt
As we’ve mentioned above, unless you have some personal savings, you will need to find alternative ways of financing your yurt. So, can you get a mortgage on a yurt? The reality is that it’s almost impossible to get a mortgage on a yurt.
Most lenders out there don’t recognize traditional yurts as permanent structures. Furthermore, most lenders will be hesitant to lend money for a property they can’t appraise accurately. The mobility that yurts offer means they are not considered real estate.
And this is the situation with modern yurts and other unusual properties. Therefore, getting a mortgage on a yurt will be next to impossible.
Loan Options for Building a Yurt
If you are looking to buy or build a yurt, getting a mortgage won’t be easy. The good news is that there are other financing options out there which can help you to buy or build a yurt. In this section, we will take a closer look at some of the available loan options for building a yurt.
Besides using a yurt as your primary dwelling, you can also use it to make additional income. For instance, you can use your yurt to set up a yoga studio, hair salon, massage retreat, or art gallery. You can also utilize it as an Airbnb or even rent it out as a glamping destination.
If you intend to utilize your yurt this way, then you may qualify for a business loan. Business loans are available throughout the U.S. The business that you want to set up on the yurt will then act as the collateral.
In light of this, you should talk to your local banker, local credit union or any other lender and find out whether you can qualify for a loan to set up this type of business. As long as you are a credit-worthy individual, then it’s highly likely you will get a financier for your project.
But don’t stop at the first lender that you get. Make sure you shop around as much as possible and then compare the rates. From there, you can then choose the lender that offers the best rates and terms. Also, remember to read the fine print and ensure you understand everything before you sign the paperwork.
A land loan provides yet another financing option for a yurt. With this method, you will get a loan for the land that you want to build the yurt. The land the yurt will be sitting on will then act as the collateral for the loan.
There are several lenders out there who will be willing to give you this type of loan. Once you get the loan, you then go ahead to build your yurt the way you wish. You will then be making monthly loan payments until you finish repaying the loan.
However, this financing option is only available for someone who owns the land they want to build the yurt on. If you don’t own the land, then you may have to explore some of the other options we’ve discussed in this article.
We should point out that this option is quite a risky one. As we noted above, the land the yurt will be sitting on will be the collateral. So, if you are unable to repay the loan, the lender may end up selling it to recover their losses. Therefore, you should only pursue this option if you have a consistent and stable income.
If you have a decent credit score, stable and consistent income, a low debt-to-income ratio and some sort of collateral, then you may also qualify for a personal loan. You can then use this loan to finance your yurt.
Interest rates and repayment terms will vary from one lender to the next. Therefore, you should ensure you do your homework well before settling on any particular lender so that you can make an informed decision. Again, remember to read and understand the fine print.
Some manufacturers that sell yurt packages and yurt house kits also offer to finance yurt buyers. For this type of financing, the yurt seller may lend you the loan directly while others may partner with third-party lenders.
As you may expect, the lender will also check your creditworthiness similar to the one carried out for personal loans. Therefore, the lender will check your credit score, debt-to-income ratio, income, and availability of collateral. Also, the rates will vary from one institution or business to the other.
- You will need to find a means of financing your yurt
- It’s not easy to get a mortgage on a loan
- There are several options for financing a yurt