Sunday, January 01, 2006
Log Home Finance Search
There are many companies and banks that do construction lending. In fact my company is wholly owned by a small town bank so we know both the bank side and the mortgage only side of this business very well. What you may not realize is there are only about 4 companies that will do a log home construction loan.
"Why wouldn't they finance a log home?" you ask? Great Question!
When you have a log home, underwriters and banks call them "unique" even though they have doors, windows and a ceiling just like "stick built" homes do. Unique because there are no identical homes on identical lots within 5 miles that have sold in the previous 6 to 12 months. That is the FANNIE MAE standard definition for a "comparable home" for the purpose of appraisal and underwriting.
Of course the mystique of the log home made you want it. Unfortunately that same good quality we like eliminates all the other major players in the lending business.
Of the remaining 5 companies that welcome log home construction, we work with ALL of them. Only two of those will do log construction without having any similar homes to compare to. I do loans from both of those companies.
Right now I'm doing a log home construction loan for a self-employed borrower. There are no log homes within 30 miles of his location yet I was able to get it approved. His end rate will be 6.625%! It can be done!
With that said, please allow 60-90 days prior to when you intend to start construction to begin your loan process. We can get these deals done in 13 days if we have to, and I have one of those right now that we are racing to complete.
"Why wouldn't they finance a log home?" you ask? Great Question!
When you have a log home, underwriters and banks call them "unique" even though they have doors, windows and a ceiling just like "stick built" homes do. Unique because there are no identical homes on identical lots within 5 miles that have sold in the previous 6 to 12 months. That is the FANNIE MAE standard definition for a "comparable home" for the purpose of appraisal and underwriting.
Of course the mystique of the log home made you want it. Unfortunately that same good quality we like eliminates all the other major players in the lending business.
Of the remaining 5 companies that welcome log home construction, we work with ALL of them. Only two of those will do log construction without having any similar homes to compare to. I do loans from both of those companies.
Right now I'm doing a log home construction loan for a self-employed borrower. There are no log homes within 30 miles of his location yet I was able to get it approved. His end rate will be 6.625%! It can be done!
With that said, please allow 60-90 days prior to when you intend to start construction to begin your loan process. We can get these deals done in 13 days if we have to, and I have one of those right now that we are racing to complete.
# posted by Possum @ 2:26 PM 
