# Mortgages/loans for Amish house



## A_Griffiths (Aug 10, 2020)

Hello. My husband and I have been slowly making the transition into homesteading and have been searching for the right place to plant some roots! We came across an Amish house that would set us up perfectly, but there is no electric. There is bathrooms with showers- I’m not sure what plumbing looks like. Is there any way of being able to get a mortgage loan for a house like this? Where would I start? We are out in Michigan.


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## Fishindude (May 19, 2015)

Any smart banker would walk away from this loan unless the borrow has plenty of other collateral.
A home without electricity and some kind of weird plumbing isn't too desirable for the majority of the population. Chances are there are many building code violations as well, since the Amish don't build to any particular guidelines.


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## Gayle in KY (May 13, 2002)

I doubt it would pass inspection.


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## po boy (Jul 12, 2010)

May be with a lot down and a local lender/bank.


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## CKelly78z (Jul 16, 2017)

My BIL was looking recently at a really nice Amish place in middle Ohio, he would have wrote a check for it out of his retirement, so no loan consideration for that, but I don't think a bank would be too keen on an off grid farm loan.


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## muleskinner2 (Oct 7, 2007)

No regular bank will touch it. You might be able to get the owner to carry the note.


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## GTX63 (Dec 13, 2016)

I looked at an Amish house with a friend a few years ago. No electric, but a few solar panels to run a router.
Water was from a well with a generator. Washing machine was gas powered. The house was 3 years old but no doors, closets, only floor cabinets, no ductwork for hvac. Beautiful property, very nice barns and outbuildings, house was vinyl sided and plain.
15k to run a pole, set a meter and bury electric.
About the same to run wiring.
10k to run water and another 12k to dig up the steel drum and install a proper septic.
11k to install a furnace, central air and ductwork.
Cabinets, trim, doors, light fixtures, etc and the bill was adding up.
It was to be a cash deal. No bank would offer a mortgage.


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## A_Griffiths (Aug 10, 2020)

The one we were looking at has baseboard heating, natural gas and a wood burner, a septic, and closets. Seems to have running water in the house already. I wasn’t sure if there was a different route of loans we could do, like a fix it up loan then refinance after electric is ran, or a farm land loan? It is also a beautiful set up, with a little land, nice out buildings and a large garden area already set up, but that darn house.


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## 101pigs (Sep 18, 2018)

A_Griffiths said:


> Hello. My husband and I have been slowly making the transition into homesteading and have been searching for the right place to plant some roots! We came across an Amish house that would set us up perfectly, but there is no electric. There is bathrooms with showers- I’m not sure what plumbing looks like. Is there any way of being able to get a mortgage loan for a house like this? Where would I start? We are out in Michigan.


If the house is not up to code no bank will load money on the house. If not up to code the electric company will not install electric. 
Building, electric, plumbing etc. all has to be up to code in order to get a load on it. 
The 2x4 framing studs has to be 16 inches on center. 24 inches on center will not work for a house.


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## po boy (Jul 12, 2010)

A_Griffiths said:


> The one we were looking at has baseboard heating, natural gas and a wood burner, a septic, and closets. Seems to have running water in the house already. I wasn’t sure if there was a different route of loans we could do, like a fix it up loan then refinance after electric is ran, or a farm land loan? It is also a beautiful set up, with a little land, nice out buildings and a large garden area already set up, but that darn house.


A traditional lender like Fannie, Freddie, FHA, and VA will not do it. Try Farm Credit


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## Wolf mom (Mar 8, 2005)

Find a mortgage broker - get a "Non-conforming" loan. They do not use government alphabet (FHA) loan guidelines. 
If you get written bids on what work needs to be done to bring it to code/FHA guidelines, you can get a loan that will pay out as the work is being done - similar to a builders loan - that converts to a "regular" loan when the work is finished.
Ya just gotta shop around - not banks or credit unions, they're pretty conservative. That's why I suggested a mortgage broker as they work with many lenders.


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## A_Griffiths (Aug 10, 2020)

Thanks a bunch for the information!


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## Saxsona (Dec 30, 2020)

I suppose it is possible, yes. You need to speak with some local banks and see what they can offer you. Or you can use the help of some companies that dive people with mortgages, and loans. I use them sometimes, when I need help. In case you are interested I use Mortgage Advisor Middlesbrough services. I am sure that you will find a solution to this problem, and you will get a mortgage to fix your house. Hope you will find my message useful, I really want to help you. Keep me in touch please. Thank you.


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## MartinWilliams (7 mo ago)

GTX63 said:


> I looked at an Amish house with a friend a few years ago. No electric, but a few solar panels to run a router.
> Water was from a well with a generator. Washing machine was gas powered. The house was 3 years old but no doors, closets, only floor cabinets, no ductwork for hvac. Beautiful property, very nice barns and outbuildings, house was vinyl sided and plain.
> 15k to run a pole, set a meter and bury electric.
> About the same to run wiring.
> ...


No bank will load money on the house if it is not up to code. The electric provider will not install electricity if it is not up to code. To obtain a load on it, the building, electric, plumbing, and other systems must all be up to code.


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## MreoPitr (7 mo ago)

I’m not an expert, but I can give you advice from my personal experience. It will be: better don’t ask such important questions at random people. You should try and go to the specialist (I mean mortgage advisor). These people know what to do, they know laws and have a lot of experience in solving people’s loan problems. I’ve been desperately trying to get a loan, but no result, because my job seemed to be unstable. I went to Mortgage Advisor Bristol and he found an option for me in a short period of time. Thanks to him, everything is fine now


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## Riverdale (Jan 20, 2008)

Here in the middle of the mitten, all the Amish home built in the past 10 years all have code wiring in them, just buried behind the drywall.

I believe that is true in the northern Lower also. Not sure about the Thumb or the area north of Clare.


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## muleskinner2 (Oct 7, 2007)

A_Griffiths said:


> Hello. My husband and I have been slowly making the transition into homesteading and have been searching for the right place to plant some roots! We came across an Amish house that would set us up perfectly, but there is no electric. There is bathrooms with showers- I’m not sure what plumbing looks like. Is there any way of being able to get a mortgage loan for a house like this? Where would I start? We are out in Michigan.


No bank in America would touch it. And no insurance company would insure it if they did.


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## JRHill02 (Jun 20, 2020)

muleskinner2 said:


> No bank in America would touch it. And no insurance company would insure it if they did.


The insurance issue is critical. Much like with an auto loan, your asset MUST be insured. We did not have a mortgage but fire/liability and our investment was the priority. Being off grid, far remote, no cell coverage, no landline and on what is categorized as Recreational Land we could NOT find someone to write a policy. We finally did find Country Financial to write a 'farm policy' but it did have to meet their definition of a farm. We thought we could get through by calling our set up a tree farm but there was no history of timber transactions so that died. But if we had livestock, yup. A pig didn't do it nor a breeding pair but when we added a goat (Nigerian) we were good to go. Also with a farm policy they easily accommodated the large backhoe/loader and even the gator as working equipment. But not the Woodmizer. The policy was expensive.

After two years of coverage we reapproached State Farm who insured our vehicles. They didn't even flinch except for the woodburner so we added ventless propane to be our 'primary' heat source. And they insured EVERYTHING with better coverage plus the Woodmizer for less than Country Financial's stingy coverage. The policies even included farm equipment failures. Cool. In 14 years we still haven't had a claim on the farm policy.

Another biggy in underwriting is the fire dept in terms of distance, response time, access and, HAH, the nearest fire hydrant. The ins companies know and have all the data. So just being off grid is not a deal killer. You HAVE to have an acceptable amount of infrastructure and failover.

As for a mortgage, I'm still not sure that is possible here but is is possible to get another type of loan. Something that leverages the value of a large or greater asset? But if its not a true mortgage, tax deductibility can become a problem.


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## JRHill02 (Jun 20, 2020)

jessyrich said:


> We have applied for such a loan and it wasn't approved at the end. That's a huge risk and every serious organization understands it.


My dealings with the Amish were wonderful. Of course if there is a issue between Amish brethren and the 'english', you know which way it will go. If you know German it would help. You certainly don't know their German but it would be better....

I am curious about why the home is turning over, though. If within the community I would think it would stay theren, esp the land. Do you have any ideas?


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## boatswain2PA (Feb 13, 2020)

A_Griffiths said:


> The one we were looking at has baseboard heating, natural gas and a wood burner, a septic, and closets. Seems to have running water in the house already. I wasn’t sure if there was a different route of loans we could do, like a fix it up loan then refinance after electric is ran, or a farm land loan? It is also a beautiful set up, with a little land, nice out buildings and a large garden area already set up, but that darn house.


No electric but baseboard heating with natural gas? What pressurizes the running water?

Without electric it will not qualify for a freddie/fannie conforming loan, however if the house is not too unusual for the area you should be able to get a local bank to give you a non-conforming loan for it. 

A "conforming loan" means it meets specific criteria so that it can be sold to other banks. Most small banks write the mortgage (and make their money by writing the mortgage) and then sell the mortgage to bigger banks to spread the risk around. Therefore a non-conforming loan would have to be small enough that the small local bank/credit union would be able to keep it on their books. These banks are often not interested in keeping the loans for 30 years either, so you might have to do a 5, 10, or 15 year max loan. Also expect a little higher interest rate.

I have bought two houses with nonconforming loans.


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## luvrulz (Feb 3, 2005)

A_Griffiths said:


> Hello. My husband and I have been slowly making the transition into homesteading and have been searching for the right place to plant some roots! We came across an Amish house that would set us up perfectly, but there is no electric. There is bathrooms with showers- I’m not sure what plumbing looks like. Is there any way of being able to get a mortgage loan for a house like this? Where would I start? We are out in Michigan.


The Amish do it frequently and usually do a 5 year balloon. By that time, you'd have the electric installed?? Have the plumbing checked - but depending on locale, should have be inspected.


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## JRHill02 (Jun 20, 2020)

You should stay in the burbs. Don't do that to your kids until you know what your are doing. You will absolutely send your kids to the city to escape when they can - instead of them having the best times of their life. Don't do that to your kids.

The Amish would have their house in order. So should you.


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## JosephSeiss (May 3, 2017)

JRHill02 said:


> You should stay in the burbs. Don't do that to your kids until you know what your are doing. You will absolutely send your kids to the city to escape when they can - instead of them having the best times of their life. Don't do that to your kids.
> 
> The Amish would have their house in order. So should you.


Interesting reply. The OP is two years old. They didn’t say they had kids. They said they had been slowly transitioning to homesteading. Are you referring to potential children? Why would any potential children run to the city necessarily?


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## JRHill02 (Jun 20, 2020)

JosephSeiss said:


> Interesting reply. The OP is two years old. They didn’t say they had kids. They said they had been slowly transitioning to homesteading. Are you referring to potential children? Why would any potential children run to the city necessarily?


Joseph, I wasn't replying to the OP but generally to the topic in this thread. And I respect that you called me out - I was harsh. But I've had both personal experience and detailed observation and from that a reason for my above comment. To this thread, an Amish property suggests that it was built to be and is off grid. For many, moving from the bounds and shackles of the connected community life to the liberty of self reliance is enduring. Wouldn't it be wonderful if....

In reality it is much different. Substituting the services one receives without a whole lot of appreciation but paying for them in a socialistic way all of a sudden is a shock when one is on their own. Whether they have kids or not. Having kids certainly complicates it. The Amish succeed because they are a like minded community and not only are young ones skilled and prepared from upbringing, they are supported. Even to discipline if they are lacking. What could be more simple than an agrarian life? I'd say it is living in the city.

If one was to try that project and is unskilled they will maybe become a problem for themselves. And neighbors. I've seen it happen. I've had it happen to me. From a high level, here is my personal experience:

I/we moved from the city and built from scratch on raw land in a far rural area. I had burned out but had done extremely well in the city. I had the technical skills. I can do about anything and succeed. Then came the reality. People around the area had built, birthed and successfully raised families on wages less than minimal wage. So in a time where my skills could have been 4-5x they were squat because they were not in demand. And IF those skills were in demand the local wage rates drove them down proportionally. But not so much if you were a county, state or rural utility employee. And you didn't get those jobs unless your family name had been around for a while.

So the big picture is really bigger. Ultimately I worked on line and escaped the local economy.


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## JosephSeiss (May 3, 2017)

JRHill02 said:


> Joseph, I wasn't replying to the OP but generally to the topic in this thread. And I respect that you called me out - I was harsh. But I've had both personal experience and detailed observation and from that a reason for my above comment. To this thread, an Amish property suggests that it was built to be and is off grid. For many, moving from the bounds and shackles of the connected community life to the liberty of self reliance is enduring. Wouldn't it be wonderful if....
> 
> In reality it is much different. Substituting the services one receives without a whole lot of appreciation but paying for them in a socialistic way all of a sudden is a shock when one is on their own. Whether they have kids or not. Having kids certainly complicates it. The Amish succeed because they are a like minded community and not only are young ones skilled and prepared from upbringing, they are supported. Even to discipline if they are lacking. What could be more simple than an agrarian life? I'd say it is living in the city.
> 
> ...


I understand. I see you live in the same area I do. Unfortunately I am still in city. I cannot see retiring here because of money constraints, and so I entertain the idea of cheaper living elsewhere with perhaps a little less Seattle politics. I have kids that are grown and on board for a change. I would never go full mountain man rural, but say an hour from a city, that’s doable, just not economically feasible in western WA anymore.


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