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Financing Your Log Home

Taking A Look At Log Home Loan Financing Options

As a log home manufacturer, we talk about loans pretty often. While we don’t offer in-house financing, we’re here to help guide you. 

The first thing we usually do is break down a common misconception. The financial process for new log home builds is nearly identical to financing any other newly built home: the loans, the financing options, the mortgage prices, etc.

Next, we tell people that the most common loan we see is a construction loan. This involves arranging a construction loan to cover the costs incurred during the building, which then gets replaced by a permanent mortgage when the project wraps up. 

The most unique aspect of the log home loan planning is the log manufacturer’s portion of the payment—also known as a “draw”—in the process. That’s it. Banks experienced with log home lending are well aware of this. Banks less familiar with log construction need to adjust their draw schedule. Check out our buying process to see how it falls into your project’s timeline.

CK Log Homes’ Tips for Researching Loans

Logs Before Loans: Construction loans often require a contract with a builder showing the projected cost to build. The builder can provide a contract once you have supplied him with the floor plans, which we do in-house for you at Cedar Knoll. 
Local and Regional Banks: Local and regional banks may offer more flexible loan terms since they have their pulse on the real estate market. 
Specialty Lenders with experience in log home construction may offer more tailored packages.
Get Loan Pre-Approval: This helps you set a realistic budget. While people with credit scores of 620 and higher tend to have the most success securing loans, having a lower credit score shouldn’t stop you. It just means you might need to shop around.
Down Payment: Be prepared to part with some precious funds, as a higher investment could help you obtain the best loan plan. Statistically, 10-20% down is the sweet spot. Again, there are exceptions. You just have to find them.
Research and Shop Around: Shop around. Compare rates. Read the terms from different lenders to understand what is or isn’t a good deal and find the best one. Additionally, construction loans may be the most common, but they’re far from the only option. Do some searching to find the one that best fits your situation.

Well-Known Banks & Lending Institutions
As a caveat, CK is uninvolved in the loan process. We do not necessarily recommend these institutions. That said, we have put together a list of lenders involved in log home financing within the last 10-15 years that may give our customers a leg up:

  • Wells Fargo
  • U.S. Bank
  • Bank of America
  • Chase Bank
  • SunTrust Bank
  • Regions Bank
  • TD Bank
  • Citizens Bank
  • BB&T / Truist Financial Corporation
  • PNC Bank
  • Fifth Third Bank
  • KeyBank
  • Discover Home Loans
  • Rocket Mortgage
  • Churchill Mortgage
  • Navy Federal Credit Union (eligibility required)
  • USAA Federal Savings Bank (eligibility required)
  • State Farm Bank (eligibility required)
  • Veterans United Home Loans  (eligibility required)

For additional resources, check out the links below:

NAHB Lenders Article

NAHB Buyer’s Guide

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