Construction Loan

I think the reason you can do this with log homes is that they come in a kit and are pre-designed. That takes away a lot of the risk of structural problems. Even with that I think the bank sends out an inspector to examine the work prior to releasing the draws.

 

Thelt - So are modular homes. Log homes are VERY difficult to comp. out, for ease of loan and re-sale ability (buyer getting a loan), I'd suggest sticking with a more traditional type structure, although if you found yourself in a log home community, then it may be attractive, otherwise see above...

Builder - when constructing this new structure, make sure it's no more than a glorified shed, b/c having 2 living spaces on 1 piece of land, is a difficult sell, according to Fannie Mae. It also may not hold it's value, if you are dead set on building something, I'd look at raw land, or adding onto an existing home, and only having one SFR per plot of land.

 

I have moved away from building with log anyway. I am considering a modular. I looked at a model from Palm Harbor that I liked a lot. All that being said my dad had very little trouble getting his financing in place. He had a good chunk of money to put down and put three acres of land with it though.

 

Whatever I build would either be added onto later as a full residence removing the existing house, or it would be built in a way that it can be converted to a shed/outbuilding. I've already thought all that up.

 

I'm currently doing the financing for a modular build in Asheville, that seems to be a little easier since most of the home is built off-site, it comes ready to bolt together, including copper water lines, electrical, dry wall, and one coat of paint. Construction time is much faster, and holds the same value as a site built home. If you are building your primary residence you can borrow up to 100% of the finished project, and if there is room, you can build in an interest reserve to make your payments during construction. I thought that was pretty neat, no money out of pocket.

 

I looked a company in Asheville called Deltec. They build a sort of modular/kit home. They are pretty neat because they build round houses. They do not seem nearly as professional as Palm Harbor though.

http://www.deltechomes.com/