Yurt Financing Will Help You Buy A Yurt Today

Yurts have been growing in popularity both nationally and around the world.  A lot of people are looking for ways to live in nature, to leave behind the fast-paced world.  There are a lot of things unique to yurts that you need to be aware of if you’re thinking about yurt living, including how to find yurt financing if necessary.

In this article we’ll talk about how to go about getting financing for your yurt, along with some common things to look for and keep in mind as you are going through the planning stage of yurt living.

Purpose for the Yurt

The first thing to think about when beginning the process of acquiring a yurt is what is the purpose that you have in mind for your yurt.  There are a lot of design details and amenities to choose from, and that will play a part in financing.

Yurts are very versatile and can be used for a lot of different purposes such as a home, an office, yoga studio, vacation home, or as a rental or Airbnb.  Your main purpose for getting a yurt will give you a starting point to set your budget and pick your size. 

Financing your Yurt

Financing a yurt typically is done through a personal line of credit from a bank or local bank.  Since yurts can be mobile most lenders are unlikely to recognize the yurt as a traditional home.  Because of this a yurt loan may be a personal loan, or you might take out a loan against the value of your land.  A lot of people will also use a credit card for the purchase of the yurt.

Morgan Reiter, who is the founder of Oregon Yurt Works, has this to say about yurt financing: “The trick is in the nomenclature.  They said (the banks) ‘We don’t know what the heck a yurt is, but to us this looks like a beautiful, contemporary, architecturally designed house.’”

Mr. Reiter’s advice is to never refer to the home as yurts.  “If you just tell a bank’s appraisers an architect designed it, they’re fine.”  So how you present your request for a loan and the wording you use can play a big part in being approved for a yurt loan.

Yurts also make a great and affordable investment.  As a vacation rental property, yurts are pretty straightforward to install and set up.  Typically, yurts have a very quick turn around on investment especially as a rental property for those looking for a glamping experience.  They are also great as an office and business location.

Before purchasing a yurt as a vacation property, you will need to check with your local building office to ensure that you are setting up the yurt in an area that is zoned for rental properties. 

As a rule of thumb, you should also check with your local building office before purchasing a yurt for any use to make sure that you can have your yurt set up on your property.

In-House Financing

SimpleTerra offers an in-house financing policy.  We have the belief that everyone should have the opportunity to buy and live in the house of their dreams.  The following are guaranteed through SimpleTerra:

  • Interest Rates never higher than 10%
  • Down Payment between 50% and 65% of home cost
  • Repayment Terms between 12 and 36 months

You can find SimpleTerra financing application at SimpleTerra Financing.  If you do fill out the application form, there is no obligation to buy at that time.

Location for your Yurt

The location of your yurt will most likely be a factor in your lender's consideration.

You will want to think about energy and water source when considering the perfect spot for your yurt.  If you are building in city limits, then you will most likely have access to local water and power.

If you are building in a remote location you will want to make sure that you have access to some kind of water source - whether a stream, lake, well, or cistern.

Furthermore, don't forget about waste!  It is one of the most important yet overlooked considerations when moving off grid.  Will you connect to a sewer (not off grid), install a septic tank, or maintain a composting toilet?

And even zero waste families have that pint jar of garbage that must be removed from their homes.  Is there a county dump site, will you have to incinerate, or do you have enough acreage to dig your own landfill?

Power in a remote location is less of an issue these days with solar power being so readily available, and it has become more affordable as the technology continues to make rapid advancements. 

Off-Grid Living

Where you are planning to put your yurt can have an effect on the bank's level of comfort in offering you a loan.

A lot of people these days are looking to escape the hustle and bustle of city life, but you may have a hard time acquiring homeowner insurance if you are too far away from public services, i.e. ambulance and fire stations.  Lenders usually require you to maintain insurance on your yurt for the life of the loan.

Locales like the mountains or deep in the forest are becoming the most common places for people wanting to live off-grid in their yurts.  Hypothetically though, if you were to purchase land that doesn’t have vehicle access and is adjacent to public lands, then legal access can become a challenge.

It is very hard to get approval for road access through public land and sometimes through private neighboring land. It is very important to make sure that you have an access road or point before purchasing the land or the yurt if this is the case.