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Financing an Off-Grid Property in Montana30 January, 2018
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Real Estate Agent with Clearwater Montana Properties, Inc.
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Ann Snortland

Every day, more people jump into the world of living off-grid in Montana.  Living off-grid means residing in a house or dwelling that is not connected to any type of power source.  Instead, residents generate all their own power through a variety of methods.  Technology has made it possible to live off-grid without having to sacrifice the creature comforts we are all accustomed to -- TVs, washer and dryer, appliances, and even hair dryers. It just takes a little more planning. 

Banks have been a bit slow to embrace the idea of loaning money on off-grid properties.  In the past, the reasons for their reluctance has been a lack of comparable properties required to form a clear understanding of appraised value.  Save those receipts!

The investors who buy the mortgages on the secondary market were reticent about these types of loans.  Therefore, lenders were not terribly excited to make these loans as many had to keep them in-house.

That has started to change.   Many local Montana community banks can loan on off-grid houses and bare land.  With more lenders in the game, you have more buyers able to purchase off-the-grid, which creates more comparable properties, and more lenders are willing to jump in.

In fact, Veteran’s Affairs has now started to support loans on off-grid houses.  They are even encouraging veterans to buy these types of properties.  It has required expanding the area allowed to find comparable properties for the appraisal.

  Save those receipts!

Finding the right lender is a critical part of the buying process.  You’ll want to talk to lenders in the beginning, so you understand what the loan process looks like on an off-grid property and be sure you are comfortable before you fall in love with a listing.  I recommend working with a local lender who knows the Montana market and can help get you started.

Buying an off-the-grid property can be a very fulfilling way to live.  Improved solar and wind generation technologies, coupled with more lenders willing to make these types of loans, has made now a great time to think about buying an off-grid property!

Contact us today to see how we can help you!

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