a difficult-to-chew barrier. Should a gap be left open in the plaster, the bales themselves are too densely packed to make comfortable housing for mice and other rodents. All those comfy spaces in your neighbor’s frame walls, lightly packed with batt insulation, make a much more inviting home.
There is little food for any living creature in a straw wall; even termites tend to eschew straw. An inordinate amount of seed head in the straw does provide a good source of food, which is why you should check your bales for excess seed content before purchasing them. Care should be taken — as with any style of construction — to keep pests out during the building process.
While we have heard of very few pest problems in bale walls, that doesn’t mean pests won’t live in your roof, floor, and basement!
Mortgages, Insurance, and Resale
Perhaps the most difficult part of building with straw (or any other alternative materials or ideas) is presenting your project to the various institutions that often must be involved. Lenders and insurers are, by their very nature, conservative and averse to risks. Any construction method that is perceived as new or experimental can seem to them like a risk they’d rather avoid. It often takes time and no small amount of educational effort on your behalf to negotiate for mortgages and insurance for your project. All the evidence exists to convince them that your proposed straw bale house will be a safe prospect for them, but you will have to be the one to present it to them.
It’s Not Impossible to Get $$
Obtaining a construction mortgage, even for a conventional structure, can often be difficult, especially if you are planning to build for yourself. Banks are wary of construction projects because an awful lot of their money goes into the project before it becomes a home with any appreciable resale value. During construction, their money is in a risky spot, and they must have confidence in you, your abilities, and your overall plan. They must also have confidence in your financial situation. So you enter this scenario with several potential problems to overcome, never mind your plans for straw bale walls.
Don’t panic! Many bale builders have obtained financing from regular sources. There are many things you can do to help your situation. First, it will work in your favor to bring the lender a good set of building plans that are professionally drawn and appear thorough in all their considerations. So will a thorough and realistic budget and timeline. Ensure your budget contains guaranteed quotes for materials and services you’ll require. If you are a first-time builder, you may need to hire professional consultants to show the bank that there is good help available to you should problems arise. If you are hiring a general contractor to build your home, he or she will have to fill out paperwork for the bank too. Hiring someone with a good local reputation will certainly help.
The US Department of Energy has published positive findings about straw bale construction, and other government agencies have also done preliminary studies on straw bale with positive results. The CMHC (Canada Mortgage and Housing Corporation), which helps set many of the standards used by lending institutions in Canada, is quite supportive of straw bale construction, and their data can be used when negotiating for a loan. Government facts, figures, and opinions can be powerful tools when you’re dealing with lenders.
Many bale builders have had to approach numerous lending institutions to find the right combination of personality and corporate culture before they secured funding. Don’t let a rejection put you off. If you truly are a good risk, eventually somebody will lend you the money. It takes thoughtful preparation and patience to explain straw bale construction to a lender.
Obtaining a building mortgage is one thing; living by its strict guidelines is another. Building mortgages come with strict pay-out schedules, and money is only advanced to you when you have completed each phase to the lender’s satisfaction. They will also determine percentages of the overall budget that can be used for certain expenses. For example, they will determine how much of the overall amount you can spend on windows. So your initial budgeting may need to be adjusted to work with the lender’s guidelines. The lender will also hold back the final portion of the loan until they are satisfied that the project is complete. Building with a conventional construction mortgage is often stressful and occasionally requires that you have other means of financing when delays or unforeseen expenses arise.
As the number of bale homes continues to increase, it becomes more likely that a financial institution in your area has already lent to a bale home builder. Some research into existing bale homes in your area can lead you in directions where the doors have already been successfully opened to straw bale buildings.
Research Lending Options
There are many excellent references that describe methods and means for obtaining financing. Read widely before you plunge in — and remember, numerous options are still available to you should you receive an initial negative response from a banker. People have financed bale homes in all kinds of creative ways. Some have applied for numerous credit cards and run them to their maximums to build the house, and then consolidated their credit card debt with a single financial institution at good rates, using the completed house as collateral! Lines of credit can be put to use, as can retirement savings plans. Be sure to fully research any and all programs and incentives that might be offered by government agencies in your area.
Insurance
Insurance companies are concerned with facts and figures that indicate levels of risk. The existing research for straw bale homes scores positively with most insurers, especially the excellent fire ratings. Many insurance companies already have these test results on file; others are willing to consider them if you submit them with your application.
Building code approval is usually the only structural requirement of insurers, so with a permit and fire test ratings, insurance is usually attainable. Some bale homes have even been insured at rates lower than similarly sized conventional homes.
However, it may take the same kind of determination as with lenders to find the right insurer. Your role as educator, confident planner and builder, and well-researched client cannot be underestimated.
Some builders want to have their project insured during construction. In this case, the fire hazards of loose and unplastered straw may cause rates to be higher than with more conventional projects.
Resale Values
In current real estate markets, chances are good that a straw bale home will receive a lower resale value estimate than its frame-walled equivalent. However, low appraisals do not necessarily mean lower resale prices. Home buyers looking for a strong, unique, and super-insulated house may decide that the attractions of a straw bale house are worth more to them than its appraisal indicates. As a side benefit, lower official appraisals often mean lower property taxes.
Since straw bale building is relatively recent, very few homes have traded hands on the real estate market. However, those that have typically sell for the owner’s asking price and within a short time frame. Sometimes it’s an advantage to be selling something unique!
Longevity
The current resurgence of interest in bale construction is due in part to the rediscovery of bale homes in Nebraska dating from the early 1900s, in which the walls have remained strong and relatively unchanged from the day they were built.
The conditions that make for a long and healthy life cycle are the same for any style of construction.
