Log Home Financing Options - Where to Go for Information on Log Home Mortgages

When I was a loan officer back in the day I would cringe whenever a customer told me their property was a log home. It's not that log home financing is hard, it's just a matter of knowing where to place the loans. The biggest obstacle with trying to go the Fannie Mae or Freddie Mac route is finding comparable sales in the window of time acceptable within their guidelines. If you live in the mountains surrounding Gatlinburg, TN an appraiser may be able to find comps without an issue. That may not hold true if you are looking to purchase or refinance a log home in Long Island.

The other option is trying to find a bank who will portfolio the loan. As mentioned in the previous post on condotels, many banks will hold a number of loans in their own portfolio. This means that they will keep and service the loans themselves and not sell them off into the secondary market. These lenders may have more flexibility in determining whether or not they think that log home loan is a wise investment. If you are a doctor who has been in practice for five years, making $250K a year and you are going to put down 50% on a $300,000 home, you're likely to some consideration. Under the same scenario, it might not matter to a mortgage company who has to sell the loan to Fannie or Freddie if they cannot find the comparable sales.

Related Posts and Resources:
National Association of Home Builders - Log Home Council
Log Home Builders Association
Farm Credit Services of America
Log Home Mortgages - Rate information on BurlingtonMortgage.biz