Get your log home project moving with early financing. There are five types of financial institutions that can loan you money for your log home project:
Traditional MORTGAGE LENDERS are a good place to start. However, your local bank might not have experience with log home financing, so be prepared to ask a lot of questions. Before delving too deep, find out what kind of loans, fees, and draw schedules each lender offers.
MORTGAGE BANKERS offer many types of loans since it is their only business, but their standards vary because they sell loans to investors who have their own rules.
MORTGAGE BROKERS are independent real estate financing professionals. They bring borrowers and lenders together but don't originate or service the actual loans. Because mortgage brokers deal with a wide variety of lenders, their rates are competitive. They're also more likely to handle loans for borrowers with credit problems -- usually for a higher credit rating.
More CREDIT UNIONS have started offering mortgage loans to their members. But since these institutions most frequently deal with personal or car loans, a lack of mortgage familiarity could slow down the process.
These days, you can also work with INTERNET BASED LOAN NETWORKS, which list mortgage programs from a variety of lenders and offer online mortgage applications. The web can be a great source for loan bargains, home affordability worksheets and other tools, as well as a resource for investigating federal, state and local government programs (VA, HUD/FHA, or Farm Credit System). If you don't have a computer, you may want to talk to your local bank, call lenders and government agencies, or ask your builder or log home company for lender recommendations.
The following is a partial list of lenders who all have experience financing log homes:
AMERICAN LOG MORTGAGE
Specializes in turnkey construction and permanent financing for log homes. A variety of construction terms are available.
CLARION MORTGAGE CAPITAL
Handles all types of construction lending, including loans for log homes, land and owner-builder projects.
FARM CREDIT SERVICES
Independently owned and operated financial service institutions serving farmers, ranchers and those who desire country
living.
THE KLEIN GROUP, LLC
A mortgage banker that combines internet resources with advanced processing software and automated underwriting systems to speed the loan process.
LOG LENDERS OF AMERICA
Only finances log homes. Offers construction and permanent loans. Staff receives special training in log home financing.
LOG HOME LENDERS
Specialists in systems-built financing for log, modular, panel, SIPs and timber frame homes.
OWNER BUILDERS LOAN SERVICES
Specializes in construction loan mortgages for the do-it-yourself home builder with unlimited draws, no draw fees and all draws on call.
RESIDENTIAL LENDING
Offers a wide variety of loan programs and will help do-it-yourselfers arrange a construction loan with a lender who specializes in 12 month construction loans.
ROCKY MOUNTAIN MORTGAGE FUNDING
A regional mortgage lender that services mortgage loans from $300,000 to $3 million.
SIGMA MORTGAGE GROUP
Residential mortgage originator licensed as a lender in Colorado and Texas.
TIMBERLAND BANK
Offers all-in-one construction loans, owner/builder financing and fixed-rate or adjustable-rate mortgages for log homes.
With some clever budgeting, you can make your dream a reality, even if you'll need to squeeze each dime till it hollers! When it comes to building a custom log home, you want to get the most house for your money. The easiest way to do that is to set a realistic budget. Always speak with your lender first; then move on to your log home producer and builder. With a firm budget in hand, you'll be better prepared to make design choices that reflect your wishes, and your wallet.
Most log home companies and contractors will be happy to offer moneysaving strategies, often called "value engineering". They'll also likely suggest places not to scrimp. Here are 10 expert tips to help get that dialogue going:
More logs equals more money. That's why a simple square or rectangular design is the most economical design. Add more corners and you'll add more costs, because it takes 18 feet of logs to create one butt-and-pass corner with an 8 foot wall height.
Using a stock plan from a producer's catalog is cheaper than creating a custom design for your home. A stock design has been built many times before, so construction errors have been eliminated, saving you both time and money.
A roof is one of the most expensive features of a home. To reduce its cost, employ a simple, single ridgeline in your roof system. More complicated systems, called "multiple roof planes" or "hips and valleys", cost more in design time, materials and labor.
Movin' on up. Building upward (two-storey) rather than outward (ranch design) allows you more square footage on a smaller lot. By adding dormers within the roof cavity or attic, you'll gain extra living space at a reduced cost. Or consider adding a full basement that includes roughed-in plumbing and electrical lines. This space will be the least expensive area to expand if you need more living space in the future. If you can afford it, add volume with10 foot high sidewalls, even if you plan to finish the basement later.
Forego an expensive mansonry fireplace with a factory-made, direct-vent, zero-clearance fireplace (around $15,000 installed) accented with decorative rock. Few will be able to tell the difference between your thrifty alternative and the real thing.
Many owners like using drywall (instead of more costly wood paneling) to add some variety in their log homes. The same applies underfoot, where you can save by using vinyl flooring or carpet in some areas, rather than hardwood floors or ceramic tile.
Choose your priorities in the kitchen. Would you rather have custom cabinetry or high tech appliances? Remember that both are easy to replace in future years. Have your heart set on granite countertops? Try granite tile instead.
To save on square footage, use built-in storage, shelving, or dual-purpose furnishings (say, a daybed with drawers underneath) wherever possible. A mudroom is a great catchall for sports equipment, coats, and other often-used items.
Take your time. The truth is that you can design and build a log home with even a modest budget, if you take the time to comparison shop on every item for your home. Will a top-of-the-line dishwasher or refridgerator increase your happiness that much? Not likely. But a luxurious whirlpool tub probably will!
Realize that changing your mind throughout the building process could also cost you money, because of the fees builders usually charge you for last-minute changes. Making smart decisions up front will keep the process on time - and within your budget.
