How can I obtain financing for my log home? Financing a Log Home...how is it different?
Many people who want to buy a log home are confused as to how to arrange financing for a log home and do not understand the difference in financing a custom log home and purchasing an existing home. Financing for any custom home that is to be constructed on your lot requires the buyer to obtain a construction loan which means that the money will be given to the client in a pre-arranged schedule called "Draws". The difference in financing a log home and financing a conventional home is that log homes are sold in "packages" or "kits" which means that a large portion of the specialized lumber used to build a log home is delivered in one delivery to the jobsite and must be paid for prior to unloading the material.
You need to confirm with your lending institution that they will comply with a log home package payment schedule. Cedar Direct requires a 25% deposit at the initial signing of the contract. CDI is currently offering a price freeze and layaway plan which requires only 10% minimum down payment to freeze the price begin the blueprinting process. The remainder of the money due on the payment schedule for the log home package after the initial 25% deposit is paid by the lending institution in most cases. An additional deposit of 25% is due 30+ days prior to delivery and the remaining 50% is due by certified bank check prior to the delivery of the log home package.
Smaller local banks are generally easier to work with recently. Contact CDI and we can help guide you in the right direction and advise you of any banks in your area who have financed our log homes in the past. Pre-approval is recommended to be sure that your finances are in order. Please call us to answer any additional questions you may have regarding financing or any other aspect of building your dream log home.
Call us today at 1.888.503.5647 (LOGS)