FAQ_financing.htm
ANSWERS
TO OUR MOST FREQUENTLY ASKED QUESTIONS
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FINANCING
What is the resale value of American Ingenuity domes?
Will it be difficult to get a loan to build my dome?
Do you sometimes have special pricing? Is there a way to secure
lower pricing if I am planning on purchasing in one to five years?
FINANCING
Q:
What is the resale value of American Ingenuity domes?
A:
We know
of only a few of our dome owners who have sold their dome; which is a compliment
in itself. Therefore, we have no resale statistics on our dome, but we have
heard of other domes being sold at a profit well above their initial building
cost. We can offer some insight that would apply. 1) Geodesic domes being
unusual, they will not appeal to everyone and it will likely take longer to find
a buyer. 2) Energy costs are certainly increasing and therefore a very energy
efficient home will increase in value as energy costs increase. 3) A
conventional home will show its age as styles change while a new coat of paint
on our dome will still look ahead of its time. 4) Our sales of dome kits has
constantly increased through the years and a quality dome that is completed
would have the distinct sales advantage of showing the finished product. 5)
The resale value of a dome or any other home, is improved when it; a) matches
the neighborhood in size and value, b) exhibits quality construction, c) is
landscaped well, d) offers advantages over other homes.
Also, with the increasing popularity of domes and rising energy costs, the market for an exceptionally energy efficient, super strong, low maintenance home should be excellent. A large percentage of the home buyers cannot visualize a dome & do not want to be involved in the floor plan design & construction of their home. As a result a finished dome that can be touched and felt is a big plus to them. If you are thinking of resale, build at least a 40’ in diameter dome, have it built with quality workmanship & keep your utility bills.
Q:
Will it be difficult to get a loan to
build my dome?
A:
Conventional mortgage lenders tend to be ultra
conservative when considering a dome. Mortgage brokers or indirect sources for
financing may be more flexible and quicker for you. Ask us for our list of possible
lenders. Refinancing other property or acquiring loans from other sources may
be easier while avoiding the restrictions and requirements of conventional construction
loans. Another popular option is the pay-as-you-go method. Combined with partial
financing, this can get you into your new dome. For a helpful, in depth look
at financing, click on this page Financing Your
Dome.
Why do lenders not like domes? Lenders determine how much they will loan based on what houses in that neighborhood sell for. The lender can usually get within three to four per cent of the value of a conventional house. But because we do not have resale statistics on domes they do not know what the resale price is. The lender has to be concerned with the worst case scinario. If the homeowner dies, they will have to resale the dome. So they are reluctant to loan as much money on a dome project. Typically they want 20% to 30% down based on the finished price of the dome. They will accept equity in the land towards the down payment.
Contact your local Wells Fargo Home Mortgage for loans on geodesic domes. If they are not familiar with dome loans have them contact Wendy Cambe, a Wells Fargo agent, located in the state of Washington at 253-568-2012.
Q:
Do you sometimes have special pricing? Is there a way to secure lower pricing
if I am planning on purchasing in one to five years?
A: Typically,
we offer a discount on the building kit during the winter months. Every year
as temperatures fall, construction activity also drops. If you take delivery
of your dome kit(s) during our slower winter months you can save hundreds of
dollars. For example, kits shipped in January and February of 2005 receive 10%
off our 2005 kit pricing. Kits shipped in March of 2005 receive 9% off
our 2005 kit pricing. The building kit options receive a 6% discount. These
special prices cannot be combined with other discounts or savings. Note: even
severe freezing weather will not damage the panels when stored outside.
If you are planning on purchasing your dome kit in one to five years you have a couple of options to pursue in order to secure lower pricing. One is to place a 10% deposit on your dome building kit before April 2005 and lock in a 6% discount off our 2005 kit pricing until January 2006. If you are not ready to receive shipment by then you may continue to hold the discounted pricing by placing an additional 10% deposit each year that you delay shipment. Or you can do nothing and receive 6% off the current building kit prices when you do take delivery.
The second way you can save money on your building kit is to utilize our five year layaway program. Patience is a great virtue. It is typical to take years before a person can purchase their dome kit. So hang in there! Sometimes saving or setting money aside is a difficult task and a little incentive is needed. We've often had requests from those who would like to make monthly payments towards their kit. Now with 5% down and a monthly payment, a dome can be yours in just a matter of time.
Layaway requires an initial 5% down payment with up to 60 monthly payments thereafter. For example, a dome kit costing $12,630 would require $630 down, with 60 monthly installments of $200. You may reduce that time with larger monthly payments. The incentive is while you are making your payments, the price of your dome kit will not change as our prices increase. You will automatically freeze the kit pricing for up to five years and realize a considerable savings. If you change your mind, all payments on your kit are completely refundable prior to the manufacture of your kit.
Anytime after the payments exceed 30%, you can order your kit and schedule a shipment date (allow 3 months). The balance is due 7 days prior to shipment. All payments on your kit are refundable until you place an order for your kit. After you place an order and we begin manufacturing your kit, our "Conditions of Sale" limits refunds to compensate for handling, material and labor costs.