Can I Finance a Log Cabin?

The short and skinny answer to whether you can finance a log cabin is yes! However an appraisal has to be done, and in order to get an accurate estimate of worth for the lender there must be comparable properties in the area. A log home is not considered to be traditional property, but rather unique. This means that you want to buy one in an area that has other log homes so you don’t run into a snag when appraising the home. A real estate agent should be to help determine whether this is the case or not.

As a mortgage bank ultimately we rely on our ability to sell a loan to Fannie Mae. This is what makes your loan conforming and therefore sell-able. Otherwise a bank’s only option is to try and do a portfolio loan which they would keep in house. Oftentimes these loans come with a higher rate and it can make it difficult for you to refinance. Ideally you want your loan to be sell-able to Fannie Mae. Their official stance is that they will purchase loans secured by unique or non-traditional housing types, such as, but not limited to, “tiny” homes or “container” homes, log homes, earth berm homes, and geodesic domes, with no limitations on geography. The main thing to remember is that there must be comparable properties in the area for it to be eligible for delivery to Fannie Mae.

Keep in mind that home owners insurance on a log can can have elevated premiums as well but its usually not as bad as you might think!

We hope this helps answer any questions and as always feel free to call or email us.