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Anyone know of a lending institution that has experience in financing for log homes.  My wife and I are ready to pull the trigger, but was recently turned down for a loan not because we weren't approved but my builder was not approved.  I've never heard of such a thing.  We actually submitted a second builder to the loan company and again was turned down because "he hadn't done any construction in the area."  I had heard that obtaining financing for a log home was dificult but I had no idea I was going to have to go through this.

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Dave - it's not just building a log home that getting financing for is difficult - it's building ANY custom home.  We had a similar situation with a customer a few years back - the builder was not "approved".  After shopping some banks we finally found a solution and went forward with the project.  When the housing bubble "popped", lending institutions and their regulations really changed.  There used to be 3 national mortgage companies that were accustomed to lending on log homes nationwide - today there are none.  This is the new reality and unfortunately it may take some time to get it back to where it once was.  Keep trying - there is someone out there who does want to lend you money.  It's just finding them that may take some time and patience.  Let us know what state you are in so we can possibly make some suggestions as to where to look or whom to contact for a loan. 

We are in Illinois, but are building in Southwest Missouri.

Would appreciate any help.




We have a construction company that travels the country and erects the "shell" anywhere to the dry-in stage.  We've been managing this for our own precut clients, and occasionally for other log systems for 40 years now.  I'm not sure if the monies will work, or if this partial service will help, but we'd entertain the idea.  And our experience should satisfy the "experience" requirement of the bank.  Your builder does the foundation and subfloor, we set the structural walls, second floor and roof.  Build up the roof to felt stage and precut for windows and doors (and allow for settling).  The builder finishes things that are typical to any type of stick construction.


I have other projects being built this winter and spring in MO, AR and OK, with crews in the area.  If you want to get detailed, send me a plan and call me at (865)471-2182.  or

I am in NY. We are using Normandy as our construction loan bank. We got a self-build loan from them. Not sure if they are in Ill or Missouri. 


vicki smith

Have you tried Farm Credit Services

We're in Oklahoma and also are finding it hard to find a bank that wants to make a construction loan for a log or timber frame house. I've found separate institutions for the construction loan and permanent mortgage, which means two closings, each with its own costs. And then the one that will make the permanent loan will demand that at least one of the comps for appraisal also be a log home, and there aren't that many around here. Any suggestions would be welcome!

Thanks Mary!  That's basically the same situation we're in.  My thinking is, if your building a log home, your not going to build it to sell.  Your going to live in it for hopefully a long time.  Comps are extreamly hard to find.  Especially if the bank needs a comp in a specific mile radious of your home.  I would think that these log home manufacturers should see this problem and try to do something about it.  If not, how long can they stay in business? 

It's not just the folks building a log home that have problems financing - it's all NEW housing.  If you've read the National Association of Homebuilders (NAHB) newsletter over the past 3 years - you'll see them fighting this situation head on - with little to no results.  I've heard of folks trying to build a conventional home and can not get comps.  Why?  When the housing bubble burst most everyone lost about 30% of value in their home.  With foreclosures all over the place, and appraisers using them as comps - well you can imagine what it has done/is doing to the new home building market.  Then, with all the new lending regulations coming in to play - it really makes it hard to get financing.  These days - who has 20% of the finished building cost of a new home just laying around in savings to use as a down payment!  Not only have the log home companies tried to do something about it, but ALL of the construction industry has been SCREAMING for the past 3 years - who is listening?  All I see in the papers and on TV is that banks are lending - however in the real world - the above post on this forum page is what what is actually being experienced.  When those in charge realize/remember that it's the construction and housing industry that drives the economy - things will change.  Otherwise all we can do is hope.

If you run for office I will vote for you Donald. Housing seems to be the pink elephant under the carpet right now.


Yes, great idea...I'll vote for him too!

Thanks Donald!  I thought Hope and Change is what this president offerred.  I say "Change it back!"

I don't have knowledge of other states, but in Oklahoma we've had some success with Financial Concepts Mortgage out of Edmond. I don't think they or anyone is doing a one time close right now, but they are doing more comps with other custom homes instead of requiring log comps. I haven't talked with them in several months, but they might be worth having a conversation with. When we have a question, we talk with J. Maltos ( ) 405-722-5626. He's been very helpful. Good luck!


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