In many Western states, alternative methods of building homes have been popping up. A man in Colorado used over 50 tons of paper and cardboard from Coors beer to insulate his home. Another man used 17,000 tires to construct his house. Using trash likes cans, plastic bottles and other junkyard stuff, they clogged the tires and went over them with stucco and concrete. The resulting appearance is relatively normal; you cannot tell that the home is made from trash. This picture was taken during the house’s construction.
Unfortunately, many banks refuse to give these innovative builders the mortgages necessary to finance the cost of building their homes. Such unorthodox methods lead to difficulty in finding appraisals, which the banks take to be a sign of an inability to sell the loan to investors, making the credit union keep the loan without a payoff.
Part of this is because of new mortgage rules enacted last year by Freddie Mac and Fannie Mae. The rules prevent mortgage brokers and real estate agents from intervening in the appraisal process. The government backed finance giants account for more than 70% of mortages around the country. Builders of odd homes may still have trouble getting loans, at least until the recession is over.
