Custom Log Home Kits & Log Cabin Kits: 5 Ways to Finance your Log Home

Custom Log Home Kits & Log Cabin Kits

Everyone dreams of owning a house someday, at least for the people that I have met. The Mathematics of financing that ownership makes it difficult.

And they would rather avoid the topic altogether, but this not be the case though. There are many available financing options to consider when you finally decide.

With the correct knowledge, your log home financing headache is a thing of the past. You can now hack it. Here are five ways you can begin to consider. Also, you can checkout this link https://mrhandcrafted.comif you want to know more about log kits for your home or cabin.


Who said you couldn’t own log cabin on a cash basis? If you are confident and you’ll be able to provide the cash enough to construct the house and finish it, then go ahead. Negotiate with the builder to start financing the construction of your log home.

Make sure first that you’ve established a draw schedule. This will help you to cover the amount of the total cost used during the progress of the building. This will then help to save on the interest payment.

Note, doing a budget first will enable you to determine what exactly you are about to spend, and how. Many people are not able to go this way thou, because finding lamp-some cash at ago is not easy.

Financing using a builder

There are thousands of builders out there, and the good news is, they are all ready and willing to finance you.

You are thus not limited to choose; your log property construction will get ready finance. This can happen in two ways, either through a traditional financing option or by the use of a credit card.

I prefer credit cards because you get to keep your points. The disadvantage with this is that it is generally for small projects. If you are going for something huge, then you’ll have to find another option.

Construction loans.

This is the most popular way of financing your log property because it is like your regular construction loan. The difference here, though, is that your lender will have to familiarize yourself with log homes.

Because there can be significant differences like payment and timing, more so if it is a log home kit. It is an excellent way to go if you’d like to save some money. All you’ll have to do is use one close loan known as construction to perm loan. Your loan will then revert to a mortgage immediately the structure is over.

If one lender turns you down, do not give up, there are many out there willing and ready to hear you out. Different lenders have different limits; you will find one you qualify for. Here are some of the things you need to know though about log home construction loans;

  • Only 80% of the total costs of the project will be offered because of the risks involved. If you already own the land, it serves as equity.
  • You will cover the closing costs and the down payment associated with the sale of the lot. In case the land is not yours.
  • There might be issues of weather and material shortages, so plan.
  • Any cost might increase because of the original loan amount transferred. This is because the original loan amount can only be, reduced, not increased.
  • You will need a builder’s risk insurance aside from the home owner’s policy.

Equity loans

Depending on how long you’ve been living in your current home, this type of loan will come in handy. If you’ve been living long enough, chances are you’ve built yourself significant equity.

This, of course, from your monthly mortgage payments. It is possible to take a home equity loan by drawing against this equity, then dealing one on one with the builder.

If you want to verify each stay of your log home construction, and receive money by yourself. You need to set contact specifications and draw a schedule.

Partner with friends and family

Many people are looking to own a log cabin or home, and they could be your friends and family members. It would thus make lots of sense to share the cost of owning one with them. For example, $80,000 vacation property with a home cabin spit among four buddies is $20,000 each. Which is so much lower compared to some properties you know of.

The property will also appreciate and will be decades of enjoyment with friends. If you do choose to go this way, make sure to avoid certain circumstances you could find yourself in. Owning with friends could be very tricky.

Be sure to spell out what happens in case one opts out and so on. It will help to avoid disputes in the future and avoid having to lose friends.


Choosing which financing module to go for to realize your dream of owning a log cabin home is critical. Considered by many as technical and hard, it is too important to ignore. It requires lots of time, extensive consultation, sit-downs with experts, and evaluation.

The most important this of all is having the desire to own one and trusting your gut. Go for the most appropriate, convenient, affordable, and efficient mode. Make sure you are comfortable. In case you are a builder yourself, that’s your lucky stars because you are about to save some money.

Notify your lender and provide proof, and you’ll be on your way to saving a significant amount of cash. Money that you would have paid builders will go to your pocket. Each module is unique, and there is no better financing module than the other. You can click here to see more information on how you can get good log kits.

With that said, finding great products is all dependent on your needs and at the moment. The module that has worked well for someone might not work for you. So, be sure to conduct some small research as well.

Rate this post


Kirk Mullen's life goal is to travel the world while living off investments. He's currently mastering real estate investing, thanks to his never ending thirst for information online. This site is his culmination of opinions gathered on real estate investing courses, guru's, and other mentors he aspires to be like.