Money for mortgages lies behind many doors. 
Those who would live in the high country need only to knock.

by Carol McDermott

Money! It’s the key to relocation, but a move to the high country need not be limited by traditional financial thinking. For those with imagination, there are many innovative options. Banks, mortgage companies, and other financial institutions have discovered creative ways to finance dreams. Some give grants for good credit ratings, while others reward construction projects that build “green.” Some offer “no money down, 100  percent financing,” and others feature special programs that reward 
energy conservation or alternative building styles. 

Piñon Mortgage caters to home owners who desire to access the economic and quality of life benefits of a more energy efficient and healthier home, according to their branch manager. The energy-efficient home saves energy, conserves water and reduces construction waste. Homeowners who choose “green” have made a commitment to the environment and themselves, making their mortgage sheltered. Athirty-year veteran of the mortgage business, she says, “We are educating the public and realtors about the benefits of having healthy, energy-efficient and sustainable homes. We are spearheading getting lending for alternative homes into the standard mainstream.” 

Another creative lender is The Mortgage Resource. “We have a lot of self-employed people who haven’t collected the documents that make their loan application ‘conforming,’” says David Roberts, Montrose branch manager. The lender offers Bank Statement Programs, which allow people to prove their income in different ways. Some of their programs offer 100 percent financing with no money down. Others need “decent credit” and $99 for the credit report and application to qualify for a construction loan. 

Traditional mortgage lenders require a five percent down payment for a conventional, or conforming, loan. Since most lenders sell on a secondary market to “Fannie Mae” (FNMA) and “Freddy Mac” (FHLMC), which finance loans in excess of $300,000 for home buyers, they follow federal guidelines. Some builders do not require new construction loans from their clients. In cases where they do, many banks want borrowers to own the lot outright. In the case of Construction/Permanent Financing, the homeowner puts twenty percent down. The project is appraised, which includes evaluation of the plans, examination of the specifications and estimation of the cost of materials.  For those who qualify, down payment assistance is possible from many banks. 

According to Bobbi Tafoya, branch manager at Wells Fargo Home Mortgage, Inc., Montrose, “Most investors view real estate as a safe and viable investment option, and with mortgage rates at their lowest level in nearly forty years, now is the time to purchase a home.” 

An advantage to borrowing from a local branch of a national bank such as Wells Fargo is that “…being part of a large institution, but practicing small hometown banking, allows us to look at the whole picture,” according to Paul Root, branch manager at the Durango Wells Fargo. “We’re the largest lender in the country.” Some alternative home construction styles his bank has financed include straw bale houses, total solar power homes and houses which use cisterns for water. “We have forty-seven different loan programs. If it makes sense,” he said, “we can make it work.” 

Money for mortgages lies behind many doors. Those who would live in the high country need only to knock.