Most lenders instantly reject Berm Home loans.
This presentation explains how appraisers unknowingly prevent loans by applying labels that misrepresent property liquidity.
The appraisers didn’t understand the question the lender was asking.
- Here is a Fort Collins Magazine article that describes the structure as super- desirable living space.
This home uses two upslope walls for thermal mass. The structure was classified as a Berm Home even though 85% of the walls are above ground.
Building codes require excavation so that weight bearing footers are put in undisturbed earth to limit structure settling. This technique is standard practice in split level construction.
Structures built on a slope will always have backfilled walls on the uphill sides. This technique is standard practice. Our house uses has backfilled wall on the uphill side of the grade.
A Berm Home is a mounded structure usually built on flat where dirt is mounded to enclose the living space. They usually have earth roofs and create cave-like living spaces.
This disqualified us from a loan – Ouch!
This video illustrates why it’s important to use disqualifying “labels” very carefully. These labels often transform energy efficiency features into loan disqualifying liabilities.