Advice (HELP) buying alternative home in Franklin County (for sale, real estate)

[livingfree1155]

Hello everyone I am in need of some advice and would greatly appreciate it.

I want to buy this home... The issues are..

This will be my first home so I am new to the process which would be fine, but the home we are trying to buy is not a typical home (yurt plus addition) and it is being sold by the owner without using an agent.

I have not tried, but from the research I have done most lenders will not be able to give me a loan for this type of property. The owners have send me lenders that would be able to give me a loan and I will be contacting them in the next couple days.

Being new to this whole process I need some advice.

If this was your situation what would you do?
And does anyone have more suggestions of lenders I should try giving a call to?
Can I get a real estate agent on my end even if they are not using one to help me through the process?

I am sorry for the headache, but can really use some help here.

[headnsouth]

FSBO plus yurt plus no buyer's agent? That's three strikes.

The owner's job is to sell their house. I wouldn't trust a lender the seller recommends after traditional financing falls through. If a traditional lender doesn't want to finance this home, there is good reason. If you haven't already, you can try a credit union - Member One is in Franklin County, I think Valley Star is too. If they won't finance, ask them to explain to you why.

This process sounds pressure-filled. Part of that might be that you are a first time buyer but part of it sounds like it's driven by the seller. Just because the seller wants to avoid realtor commissions doesn't mean the buyer has to give up representation. Bring in a buyer's agent. If the seller balks, then walk away.

And be willing to walk away anyway. It doesn't seem like it right now but there are other perfect homes for you.

[16 Acres]

I'm still wondering what a "Yurt" is ??

[Rabrrita]

A Yurt is a round tent like structure supported by an internal lattice type walls and pole roof. Think of those large round Mongolian type tents. Typical modern 'code complaint' Yurts in the USA are constructed on foundations (full, crawl or slab) with internal kitchens and bathrooms. Most 'non code compliant' Yurts are hippy commune type tents, one step above a tepee.

Because the walls and structures don't meet any recognized building or fire codes, they are generally considered alternative structure. Financing for non code compliant Yurts is near impossible unless going to some secondary market. Often when they come up for sale, the building/code inspectors is snooping about so they unload it before they get hit with the violation. If it's permitted, you can usually find some traditional financing if you hunt around and are patient.

[livingfree1155]

Thank you all very much for this info.

My wife and I are both in the military and I will try contacting USAA and seeing if they will help me finance. I will contact Member One and Valley Star as well.

What would be the best way to find a buyers agent in that area?

If the lenders say they wont help me finance for the reasons Rabrrita mentions in the post, should I walk away or try those secondary lenders?

[Rabrrita]

Do you know if the Yurt is permitted? If the structure has been accepted by the AHJ as livable structure and is considered legal, you may have to do some begging and pleading to get a a traditional lender to accept it, but it's not impossible. If it's not legal, no traditional lender will touch it. So, before wasting time, I would go straight to finding out the legal status of the property and structures.

[TN Lily]

There is a yurt forum. Do a search on Google. I quickly found a thread about permanent financing for a yurt.

Like others have suggested, I would be concerned about the legality of this structure.

Good luck.

[livingfree1155]

Okay so they told me...

They have a building permit for the deck and yurt and the foundation is considered a permanent structure.
-They also have a tiny addition that connects to the yurt and I am asking now if that is also permitted.

Have you all heard of Farm Credit and BB&T lenders? Have any of you used them?

I will start looking through the yurt forums more as well.

Thank you

[16 Acres]

Originally Posted by Rabrrita

A Yurt is a round tent like structure supported by an internal lattice type walls and pole roof. Think of those large round Mongolian type tents. Typical modern 'code complaint' Yurts in the USA are constructed on foundations (full, crawl or slab) with internal kitchens and bathrooms. Most 'non code compliant' Yurts are hippy commune type tents, one step above a tepee.

Appreciate the explanation.

I'll have to check some out online.

Not sure if I have ever seen one before.

[TN Lily]

Farm Credit is fine. It is a cooperative agricultural lender. I financed a horse trailer through them many years ago. I believe that the rate may be a bit higher, but you receive patronage dividends over time. BB&T is a regular lender.

Here is info on the Farm Credit system:

https://www.farmcreditnetwork.com/about/overview

https://www.farmcreditofvirginias.com/home.aspx

https://www.farmcreditnetwork.com/ab...stem-structure

I would suggest you consider a traditional structure. The difficulties & concerns you are experiencing will be worse when/if you become the seller in the future. Even manufactured housing on a rural lot will be easier to sell than a yurt.

Good luck whatever you decide to do!