Will
My Bank Finance My Log Home? Many banks and financial lenders will not
finance log homes. The reason is that they don't
understand about log home construction and, therefore,
consider them a high risk. However, there are
plenty of banks and lenders that DO understand
and are happy to do business with log home customers.
So, how do you find these lenders and how do you
work with them? We'll explain in this article.
Creative
Log Home Financing Financing is one of the major concerns
of most prospective log home owners. However,
the home mortgage business has become extremely
competitive in the last few years, which means
that banks, mortgage companies, and loan finance
companies have created a variety of creative options
that make it easier than ever to move into your
dream home. A number of mortgage companies have
either specialized in log homes, or created special
log home departments that completely understand
the needs of log home clients.
Log
Home Mortage Rates and Payment Calculators Mortgage rates are an important consideration
when planning financing for your log home. There
are easy ways to check current rates, get easy
quotes from mortgage companies, and calculate
monthly mortgage payments.
Private
Mortgage Insurance If you put less than 20 percent down on
a home mortgage, lenders often require you to
have Private Mortgage Insurance (PMI). PMI protects
the lender if you default on the loan. PMI costs
vary from one mortgage insurance firm to another,
but premiums usually run about a half percent
of the loan amount for the first year of the loan.
Most PMI premiums are a bit lower for subsequent
years. The first year's mortgage insurance premium
is usually paid in advance at the closing. Recent
laws now prevent you from continuing to pay PMI
when you no longer need it.
Your
Credit Score. How It Can Affect Your Log Home
Plans When you apply for your construction loan
or mortgage, your bank or lending company will
submit a request for a copy of your credit report
to one or more of the three major credit reporting
companies in the U.S.: Experian, Transunion, or
Equifax. Based on the results of that report,
you will either be approved or turned down for
the loan. If you are approved, your credit "FICO
score" will determine what interest rate
you'll pay. If your FICO score is 680 or above
(depends on company), you will qualify for the
best rate.
The
Log Home Mortgage Process. How it Works First there's the construction loan, then
the mortgage on the finished house. Maybe there
is also a prior loan for the land that the house
will be built on. How does it all come together
and get merged into one mortgage? What are the
steps? Is there a right way and a wrong way to
do it?
