Log Home Financing

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?