Funding Mission
It’s no secret that a log cabin is a substantial financial investment, but it’s also one of the smartest money moves you can make.
Log homes appreciate in value over time and remaining resilient through the fluctuations of the traditional real estate market.
If you are ready to move forward with the design and construction of your Freeloghome and plan to obtain a loan, we’re here to guide you through the log home financing process.
Choose the Right Lender
Having the right team in your corner is essential in every part of the log home building process, including financing. Traditional loan experts are often unfamiliar with the nuances of log home construction, so we recommend selecting a lender with specific experience in log home loans. Scroll down for some institutions that understand the aspects of log home financing.
Get Your Paperwork in Order
Lenders experienced in log home construction can help streamline the necessary paperwork. You’ll still need to prepare the standard documents, like pay stubs, bank statements, and T-4s (Canada) or W2s (USA) required for a traditional mortgage, you’ll need to provide documentation relating to your land purchase, a deed & survey, along with an in-progress floor plan, local building permits. An estimation budget of the entire costs of your new FLH log home.
Understand the Two-Loan Process
Unlike a traditional home mortgage that typically involves just one loan, you’ll need to obtain two loans when building your FLH log home. The first loan, a short-term construction loan, will allow you to pay for the building materials and labor construction costs during the build of the home. The second loan is similar to a traditional permanent mortgage, covering the full purchase price of the home itself.
Establish Payment Term Timelines
There are a number of moving parts when it comes to constructing your log home. Knowing what to expect, especially in the area of finances can help you feel in control of the process.
In order to secure your FLH log package, you will first need to put down a deposit. Be sure to confirm all payment terms in writing with both FLH Log Homes and verify that your lender will be able to meet the scheduled payout requirements. Again, keep in mind that you will only make interest-only payments during these staged disbursements of your short-term loan, and the full principal amount will be converted to your traditional permanent loan when your home is complete.
YOUR DREAM AWAITS YOU
We design, develop & manufacture extraordinary Eco Friendly Log & Timberframe homes. Dedicated to creating homes that are not only aesthetically pleasing but also environmentally responsible.