What does it actually take to build an alternative home?
"Moving to the country
Going to eat a lot of peaches"
- The Presidents of The United States of America
Lately, I've been researching what it takes to build an earth-sheltered home. If you've ever looked into this, on first glance, the internet will tell you that you can build an amazing earth home for staggeringly cheap costs- less than $5-10k! WOW! Like seriously, why aren't all of our homes made of earth then???
Digging deeper (sorry) you'll find that the actuality of building an earth-based home is much more expensive and complicated than many make it out to be. This doesn't mean it's a bad idea- building any house is easily both of those things- but it is important to be realistic about something so important. Here are three things you'll need to consider if you actually want to build an alternative house:
- You need to figure the costs of a completed home.
A house is more than just walls. You could probably build the walls and maybe foundation of a house with earth for less than 10k, depending on square footage. But if you actually want to live in a house, you are going to need electricity, plumbing, appliances, heating and cooling, windows, light fixtures, sinks, showers, ... the list goes on- and those numbers add up quickly. By one very rough and very much on-the-cheap estimate I calculated about $20k for those expenses on a 700 square foot house, and that is without professionals doing the finishing work.
2. Financing options can open (and close) doors.
Say you're dreaming of buying a piece of land, building an earth home, and living there. Unfortunately, financially speaking, things are a lot more complicated than buying a traditional home. On a conventional home, you can typically get a mortgage putting 5% down. Not so for a lot (land) loan: these require at least 20% down. This is because the bank has a lot more faith in the value of a home than the value of raw land. Now, after putting 20% down, if you don't have enough cash on hand to build your dream home, you'll have to take out a construction loan, which will buy your lot loan and give you the funds for constructing. These often preclude the possibility of you actually building your own house- they will most likely require you to use a general contractor- and it will be very difficult to find one who can work with alternative building materials. Once you have your house built, than you can roll the construction loan into a mortgage and things get a little easier. For those who do not have a ton of cash on hand- this complicated and expensive financing process could be prohibitive. There are ways to figure it out- like figuring out a way to go from a lot loan to a mortgage without a construction loan- with some creativity and time you may have luck.
3. You'll need a building permit.
Building permits also make matters more complicated- although we believe they are important and were created to keep us safe. Most places use the International Residential Code (IRC), although it's important to also check for differences in local laws. Don't hesitate to give your local building department a call- it's their job to answer your questions. Some happy news: cob was approved for the 2021 IBC- you can read more about that here. If you are getting any kind of financing, you will need a building permit. Some people, maybe who live way out in the middle of nowhere, may build without a permit. This is risky. With satellite technology, even the furthest out buildings can be seen. You run the risk getting your project shut down, or getting kicked out of your house by building without a permit. Plus, every time a person builds an alternative home with a permit, the whole building department and community learn and the world comes a little closer to making this a reality for more people. Getting a building permit will most likely require you to have structural engineering done- and there are companies that do this for earth-based materials- but the cost are likely to run a minimum of $10k (maybe worth it to sleep knowing the roof isn't going to fall down on your head?).
That said, I'd like to recommend 5 steps for those seriously still considering building an earth or alternative home:
Take stock of your financial situation. If you haven't already, make yourself a budget, look at your savings, and project your future savings based on your budget. This will give you an idea of what you have to work with.
Research which type of alternative home is best for you and your climate. Make sure you take the time to understand which solution works best for your needs, and also the temperature, humidity, precipitation levels, earthquake and fire dangers, etc. of the place you are looking to build. A lot of people get hung up on the wow factor of a specific technology without taking stock of all of the available options.
Draw up a rough estimate for your home. Get out a spreadsheet and try to think of every cost you can.
Talk to a financial professionals. Get in touch with a number of financial professionals to help you figure out how to finance your dream. Remember to get estimates and compare rates before committing.
Call your local building department. Now is the time to start a relationship with your local building department. Explain to them what you want to do, and you may find yourself happily surprised. It's their job to work with you to get the proper permitting- don't hesitate to ask them questions!
After you've completed this list, it's a good time to take stock of the situation. Can you swing it? Do you still have the ware-with-all and patience to go through with it? By now, you will have a much more realistic sense of what it will take to make your dream a reality. For some, it may be daunting. I personally found it very empowering and encouraging to see the actual, realistic path forward to building my dream home.