Log Home Financing OptionsSouthland Log Homes

Construction Loans Construction loans aren’t

just for new-homes, they work great for log-homes as well.

While your log-home is being built, you can obtain a construction loan, and then once it’s built you will assume the mortgage.

Once you have a detailed log home, you can get a contract with a builder and then your loan. So, the first place to start is to get with a log-home design company.

Log Home Mortgages

Questions to Ask Yourself Criteria Lenders Look For

What is your credit score?

◦ Most lenders look for at least a 620.

How much do you have for a down payment?

◦ Lenders prefer at least 20%, however, there are options available to those who don’t have 20%.

How much money do you have left over after the down payment for reserves?

◦ Guidelines vary between lenders, consult with a few to see if you have enough reserves.

Ratio of Expenses to Income

◦ Guidelines vary here as well, but basically lenders want to make sure you will be able to cover the mortgage payment.

Will your log home be sufficient as collateral for the loan you want?

◦ The lender will make sure your log home can be built within budget and be marketable once it is finished. They take into account many factors when doing this, to ensure the house will appraise for at least as much as the loan you are taking out is for.

Home Equity Lines of Credit

Another option instead of a construction loan is a HELOC. If you have an existing home, this process can be much simpler and faster. This is another option to look into for

your log home purchase.

Identifying Log Home Lenders

Many large banks and local lenders are familiar with log-home lending. It may be helpful to check with your local bank or credit union to see if they are familiar with log homes.

Don’t be discouraged if the bank you use regularly isn’t familiar with log-homes. There are plenty of resources online that will help you find your perfect lender.

Don’t Forget to Shop Around

Don’t just go with the first lender you talk to. Shopping around for interest rates, and different options is definitely an important step.

Different lenders have different criteria, so don’t be afraid to find the one that works best for you.

Enjoy Your New Log Home!

If you are still in the design process for

your log-home. Take a look at some of

our designs. We’d love to help you

build your dream home!