Log and Timber Home Living Log Home Buyer's Guide September 2022

Recently, as I was back-to-school shopping with my daughter, I overheard an exchange between a mother and her grade-schooler. The child was full of questions, like: “Why is this store so big?” and “How come that lady is wearing so much makeup?” And finally the question all little kids ask when their parents drag them to the mall: “Can I get a toy?” No matter how thoroughly the mom answered her son, a new line of interrogation followed right behind it. As the parent of a teenager, it’s been a while since I’ve been in that mom-place, but I remember those days well. It can feel a bit exasperating, but it’s important to remember that, to children, everything they see and every experience they have is brand new. Of course…

For all the questions you may initially have for a log home company, they are guaranteed to have a big one for you: Do you have land? It’s important information. The location, topography and composition of the soil on which you plan to build will have a huge impact on everything else to follow, from excavation costs to the design and construction of the house. This is why it’s vital to know where your home will be before you start to engage log home designers, producers and builders in earnest. If you don’t have property yet, don’t fret. Use these handy guidelines to narrow the field as you shop around. 1 Seek Satisfaction in Your Site As you start the log home planning process, your lifestyle should play a key…

An informed appraiser is the key to getting a fair market valuation of your log home. Many appraisers, even those with years of experience, aren’t familiar with log home construction and may not know how to fairly estimate a log home’s resale value. If you find yourself in need of an appraisal, either to finance an existing log home or to qualify for a construction loan, you’ll find helpful information in “Appraising Log Homes.” This free, 13-page booklet, written by log home construction expert Jim Cooper, is designed to help appraisers and lenders accurately determine the value of log and timber homes by familiarizing them with the distinguishing characteristics of these custom wood structures, including styles, construction, cost variables, market trends and points of comparison with other types of housing.…

Building a custom log home has many distinct advantages. It also comes with some risk. While you are in control of the design, materials, finishes and other elements, you also must trust your log home producer, builder and a host of trade professionals to realize your vision. If you do your due diligence, everything should work out according to plan, but one area where you certainly won’t want to leave anything to chance is in the financing. For most, paying for your build usually starts with a construction loan, and then the long-term loan (mortgage) is addressed down the road. While it’s possible to obtain construction and permanent funding separately, such an approach would include two loans, each with its own qualification requirements, underwriting and closing costs. That’s a significant…

Short-term construction loans operate a little differently than the standard mortgage most people are familiar with. A construction loan pays for the materials and labor needed to build your home. These loans are made for periods from six to 18 months and have higher interest rates than mortgage loans because, as far as banks are concerned, they carry more risk. Lenders will want at least a 20 percent deposit because of that risk. Typically, you pay only the interest amount until the home is completed and then the mortgage takes over (assuming you have a construction-to-permanent loan), adding the construction loan principal into that mortgage. Before granting construction loans, lenders study the project and evaluate the builder’s ability to complete the home according to the plans, budget and schedule. Once…

Current economic conditions weigh on every financial decision, and these days the economy certainly is making headlines. Words like “inflation” or “rising interest rates” can make prospective log homeowners cringe. Right along with those concerns are “supply chain issues” or “shortages of materials and labor.” It’s enough to rain on your log home parade, but don’t run for cover quite yet. These issues can be worrisome, but if they’re understood, they can be taken in stride. The search for the right loan to help finance your log home dream is still well worth the investment of time and energy, so, let’s take a look and what’s happening in the marketplace. There’s Money to Be Had “Banks have money to lend, and they’re looking for good loans all the time,” comments…