Here are some important areas to look at when financing your Log Home.

1. Appraisal - Traditional lenders do not understand the value of a Log Home and often have a difficult time lending because of the appraisal process.  Typically, an Appraiser with look for similar sized homes that have recently sold within a small area around your home site.

The problem is that your lot location may be very secluded and there are not homes in the area.  Especially homes that have recently sold.  Most Log Home owners do not sell their homes every few years.  Log Home owners usually keep their homes for several years, even keeping them in the family for children and grandchildren to enjoy.

Since traditional comparable homes are not available for an Appraiser, the lender is often left with out being able to process your loan.  Our lenders have been in the Log Home industry for years and understand the value of a Log Home.

They base appraisals off the land, blue prints, and finishes.  

2. Construction Draws - This is another challenge for traditional lenders to understand.  The normal construction process involves suppliers delivering materials to the job site and the General Contractor starting to build the home. 

The lender has the appraiser visit the job site and check on the progress of the home.  Then a Draw is given to the General Contractor for the work completed to date.

When building a Log Home a great portion of your log package will be paid for before leaving the log home facility.  Traditional lenders have a difficult time understanding that Draws are being taken before any materials are on site.  Our lenders understand that the log manufacturer will be receiving money prior to the delivery of the logs.

Learn more about how a construction loan works.

For more information please contact us, pre-qualify online, or you may apply online.