What Should I Know About Financing a Log Home?
As you begin the process of financing your log or timber frame home, you will discover that there are a number of differences compared to financing a conventional home. Below is a list of items to consider:
Selecting A Lender
- There are two types of Construction loans: A “Two-time Close,” means the lender will provide you with a construction loan that will need to be refinanced into a new permanent mortgage loan once the home is completed. This type of transaction requires that you re-qualify for the new permanent mortgage and it also requires that you pay two sets of closing costs.
- A less expensive approach is a “One-time Close” loan. Here, the lender provides one loan for the construction period. When the home is finished, the loan will automatically transition to a permanent mortgage. Remeber, lenders policies vary, but for the most part, this type of loan will not require you to re-qualify or pay new closing costs when the home converts to the permanent mortgage.
- During construction, you will pay an interest only payment based on what you owe each month. As your balance increases, so will your monthly payment. When the home is finished, you will begin to pay a Principal, Interest, Tax and Insurance payment similar to a normal conventional mortgage loan. Construction loan terms vary from 6 months to 12 months and beyond. Check with your lender.
- Find a loan officer who is experienced in construction lending, preferably experienced in log homes or timber frame construction. You want to deal with an expert that you can rely on during the construction process.
- Make sure your lender can accommodate the required payment terms of your log home or timber frame company. Understanding this upfront can save many challenges later in the process.
Getting Your Loan
The lenders listed below are either regional or national lenders specializing in the financing of log/timber homes and log/timber home construction loans. We also encourage you to check with your local banks and credit unions.
CLICK HERE to find a local BB&T Branch Loan Officer.
- Serving NC, SC & VA, AL, DC, FL, GA, KY, MD, TN, TX and WV
- Construction to Permanent Financing
Citizens Bank – Not your typical bank. ®
Contact: Dave Strickler, Senior Loan Officer
- Coverage Area: Connecticut, Delaware, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan,
New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, and West Virginia.
- Construction to permanent mortgages
- Primary & Secondary Home Buyers
- Online Application
Visit www.farmcredit.com to find a Farm Credit location nearest you!
Who we serve:
- Country homes
- Purchasing bare lots
- Lots and home construction
- Modular, log and other unique homes
- Refinancing existing homes
First Eastern Mortgage Corporation
A Division of First Federal Savings Bank
- Coverage Area: CT, FL, MA, ME, NH, NY, RI, & VT
- Over 18 years in the Financial Services Industry.
- Trusted Advisor
- New Home Construction Loans
- Help for First Time Home Buyers
Gulf States Mortgage Corporation
Contact: Lee Bowley
- Coverage Area: TX & LA
- Over 15 years in the Financial Services Industry.
- New Home Construction Loans
- FREE No Obligation Pre-Qualifying
Log Home Funding LLC
Contact: Guy Williams, Log Home Loan Consultant
50 N. 3rd Street, Box 243
Hamburg, PA 19526
- One Time Closing on construction to perm loans
- Serving CT, DE, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, OH, PA, RI, VT, VA, WV and DC
Log Lenders of America
DUE TO THE CURRENT LENDING CONDITIONS WE ARE DOING CONSTRUCTION LOANS IN THE FOLLOWING STATES ONLY:
INDIANA, KENTUCKY, OHIO, AND TENNESSEE
- Construction Loans – for both GC’s and Owner Builders
- Permanent Mortgages – purchase an existing log home
- Refinances – reduce your rate or pay off your construction loan
Contact: Greg Ebersole
Residential Mortgage Banker, Lancaster Susquehanna Bank
1800 Fruitville Pike, Lancaster, PA 17601 | Mailcode: LANCASTER BC
Tel: 717.285-6605 | Fax: 717-286-0029
Email: Greg.Ebersole@susquehanna.net | Web: www.susquehanna.net/mortgagelenders/gregebersole
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- Coverage area: DE, MD, NJ, PA, VA & WV
Union Mortgage Group
Please find an online application @ www.bankatunion.com/JacobCrowder
- Up to 95% Loan-To-Value on primary residences and up to 90% Loan-To-Value on 2nd homes
- Up to 100% end loan financing is available
- 12-Month construction period
- Easy builder approval
Wells Fargo Home Motrgage
Troy Kennedy, MBA