diff --git a/bin/vagrant b/bin/vagrant
index 25125e38d..a86d6581e 100755
--- a/bin/vagrant
+++ b/bin/vagrant
@@ -22,12 +22,13 @@ else
   opts[:ui_class] = Vagrant::UI::Colored
 end
 
-# Create the environment, which is the cwd of wherever the
-# `vagrant` command was invoked from
-logger.debug("Creating Vagrant environment")
-env = Vagrant::Environment.new(opts)
-
+env = nil
 begin
+  # Create the environment, which is the cwd of wherever the
+  # `vagrant` command was invoked from
+  logger.debug("Creating Vagrant environment")
+  env = Vagrant::Environment.new(opts)
+
   # Load the environment
   logger.debug("Loading environment")
   env.load!
@@ -40,8 +41,14 @@ rescue Vagrant::Errors::VagrantError => e
   logger.error(e.message)
   logger.error(e.backtrace.join("\n"))
 
-  opts = { :prefix => false }
-  env.ui.error e.message, opts if e.message
+  if env
+    opts = { :prefix => false }
+    env.ui.error e.message, opts if e.message
+  else
+    $stderr.puts "Vagrant failed to initialize at a very early stage:\n\n"
+    $stderr.puts e.message
+  end
+
   exit e.status_code if e.respond_to?(:status_code)
   exit 999 # An error occurred with no status code defined
 end
diff --git a/lib/vagrant/environment.rb b/lib/vagrant/environment.rb
index c9fe69a3a..fd7dfef6c 100644
--- a/lib/vagrant/environment.rb
+++ b/lib/vagrant/environment.rb
@@ -21,6 +21,10 @@ module Vagrant
     # The {UI} object to communicate with the outside world.
     attr_reader :ui
 
+    # The directory to the "home" folder that Vagrant will use to store
+    # global state.
+    attr_reader :home_path
+
     #---------------------------------------------------------------
     # Class Methods
     #---------------------------------------------------------------
@@ -80,6 +84,9 @@ module Vagrant
       @logger = Log4r::Logger.new("vagrant::environment")
       @logger.info("Environment initialized (#{self})")
       @logger.info("  - cwd: #{cwd}")
+
+      # Setup the home directory
+      setup_home_path
     end
 
     #---------------------------------------------------------------
@@ -95,23 +102,6 @@ module Vagrant
       root_path.join(config.global.vagrant.dotfile_name)
     end
 
-    # The path to the home directory and converted into a Pathname object.
-    #
-    # @return [Pathname]
-    def home_path
-      return @_home_path if defined?(@_home_path)
-
-      @_home_path ||= Pathname.new(File.expand_path(@home_path ||
-                                                    ENV["VAGRANT_HOME"] ||
-                                                    DEFAULT_HOME))
-      @logger.info("Home path: #{@_home_path}")
-
-      # Make sure the home directory is properly setup
-      load_home_directory!
-
-      @_home_path
-    end
-
     # The path to the Vagrant tmp directory
     #
     # @return [Pathname]
@@ -446,22 +436,6 @@ module Vagrant
       @config = Config::Container.new(global, vm_configs)
     end
 
-    # Loads the home directory path and creates the necessary subdirectories
-    # within the home directory if they're not already created.
-    def load_home_directory!
-      # Setup the array of necessary home directories
-      dirs = [home_path]
-      dirs += HOME_SUBDIRS.collect { |subdir| home_path.join(subdir) }
-
-      # Go through each required directory, creating it if it doesn't exist
-      dirs.each do |dir|
-        next if File.directory?(dir)
-
-        @logger.info("Creating: #{dir}")
-        FileUtils.mkdir_p(dir)
-      end
-    end
-
     # Loads the persisted VM (if it exists) for this environment.
     def load_vms!
       result = {}
@@ -484,5 +458,33 @@ module Vagrant
 
       result
     end
+
+    # This sets the `@home_path` variable properly.
+    #
+    # @return [Pathname]
+    def setup_home_path
+      @home_path = Pathname.new(File.expand_path(@home_path ||
+                                                 ENV["VAGRANT_HOME"] ||
+                                                 DEFAULT_HOME))
+      @logger.info("Home path: #{@home_path}")
+
+      if !@home_path.readable? || !@home_path.writable?
+        @logger.error("Home directory not accessible")
+        raise Errors::HomeDirectoryNotAccessible, :home_path => @home_path.to_s
+      end
+
+      # Setup the array of necessary home directories
+      dirs = [@home_path]
+      dirs += HOME_SUBDIRS.collect { |subdir| @home_path.join(subdir) }
+
+      # Go through each required directory, creating it if it doesn't exist
+      dirs.each do |dir|
+        next if File.directory?(dir)
+
+        @logger.info("Creating: #{dir}")
+        FileUtils.mkdir_p(dir)
+      end
+    end
+
   end
 end
diff --git a/lib/vagrant/errors.rb b/lib/vagrant/errors.rb
index 7b4f0e7cc..a29d9dbe6 100644
--- a/lib/vagrant/errors.rb
+++ b/lib/vagrant/errors.rb
@@ -163,6 +163,11 @@ module Vagrant
       error_key(:home_dir_migration_failed)
     end
 
+    class HomeDirectoryNotAccessible < VagrantError
+      status_code(55)
+      error_key(:home_dir_not_accessible)
+    end
+
     class ForwardPortAutolistEmpty < VagrantError
       status_code(27)
       error_key(:auto_empty, "vagrant.actions.vm.forward_ports")
diff --git a/templates/locales/en.yml b/templates/locales/en.yml
index 7f5f6168d..3f5cabe39 100644
--- a/templates/locales/en.yml
+++ b/templates/locales/en.yml
@@ -43,6 +43,11 @@ en:
         may run at any given time to avoid problems with VirtualBox inconsistencies
         occurring. Please wait for the other instance of Vagrant to end and then
         try again.
+      home_dir_not_accessible: |-
+        The home directory you specified is not accessible. The home
+        directory that Vagrant uses must be both readable and writable.
+
+        You specified: %{home_path}
       interrupted: "Vagrant exited after cleanup due to external interrupt."
       multi_vm_required: "A multi-vm environment is required for name specification to this command."
       multi_vm_target_required: "`vagrant %{command}` requires a specific VM name to target in a multi-VM environment."
diff --git a/test/unit/vagrant/environment_test.rb b/test/unit/vagrant/environment_test.rb
index 2dd2dc7a0..c4a6b2cff 100644
--- a/test/unit/vagrant/environment_test.rb
+++ b/test/unit/vagrant/environment_test.rb
@@ -36,6 +36,12 @@ describe Vagrant::Environment do
       expected = Pathname.new(File.expand_path(described_class::DEFAULT_HOME))
       described_class.new.home_path.should == expected
     end
+
+    it "throws an exception if inaccessible" do
+      expect {
+        described_class.new(:home_path => "/")
+      }.to raise_error(Vagrant::Errors::HomeDirectoryNotAccessible)
+    end
   end
 
   it "has a box collection pointed to the proper directory" do