Take Out a Home Equity Loan
A home equity loan is probably the most realistic option for log cabin financing for many of our customers. Most of the people that we talk to have a home that they have been paying on for quite a few years and the value of that property is more than it was when they originally purchased it. If you have good to very good credit you can get the bank to lend you money, using the equity of your home as collateral. Now is a good time to consider this kind of log cabin financing with housing rates at very high levels. With the potential for the government to step in and lower home values, you can capitalize on the equity that you have spent years building before it gets adjusted away.
If you do choose to take out a home equity loan, you will still want to make every effort to pay your loan off as quickly as possible. Here is a chart showing the cost of a home equity loan at 9% if it is paid off in 3, 5, 10 or 15 years.
YES! Experts say there is still money available in the form of home equity loans!
Share the Cost Between Family or Friends
Many have found that by finding one or more individuals that share the same interest in having a log cabin, they can lower the financial burden on one individual. We know of many families who have purchased modular cabins together and have found it has been a great investment in real estate as well as their family life! It is important to keep some things in mind when investing together with others.
Take a Mortgage out on the Property
If you are looking to use the building as a vacation home or even as a primary residence, you may be able to get a home mortgage, at a very good rate. Mortgage rates are at near-record lows with some at 5.25% and even lower. Take advantage of prefab home financing while the rates are low. Check out our blog post about more “Log Home Financing Information You Should Know!“
Borrow Money from a Relative or Friend
Some will look to borrow from a family member or a friend, but there are some very important things that you want to consider when doing so. We have pulled together a couple of free articles that can provide you with some very useful information when borrowing from a friend or relative for log cabin financing.
You can write a personal check
Writing a personal check is probably the easiest way to handle payment as it requires the least involvement of other parties, but it is also the least popular method of payment. A cashier’s check can also be used and you can get a cashier’s check at your local bank. There are times that we will request that you do make payment by cashier’s check.
Securing Your Family Legacy…Establish A Family Property
One of the greatest family traditions involves passing on an inheritance to your kids and grandkids. It is a symbolic gesture, like turning over the keys of your operation to an employee who will continue to implement your business plan when you decide to retire. Don’t just leave your family your money or a collection of Rolex watches — securing your family legacy means establishing a common meeting place. Invest in a nice modular log home in the country and make sure it stays in the family when you kick the bucket.
Investing in a vacation property is a win-win situation.
You have the opportunity to build equity and increase your assets, while at the same time giving you and your loved ones a great place to escape. Simply placing a log cabin on a plot of land enhances the value of the property greatly and provides a great safe investment for years to come. Also, visit our log home maintenance page for tips on how to preserve the value of your cabin home.
We understand that this is a big decision and are here to assist you throughout the entire log cabin financing and planning process, not just the design of the building. If you would like to ask some questions or discuss any of this information, please give us a call and our experts will share their thoughts from our previous experiences. Call us today at (610) 593-4556 to get started on your way to owning your dream cabin.
We’re not just cabin salesmen… we walk you through each step of the process. We are completely sincere when we say, if you have any questions or want some good objective advice on any part of this, give us a call at (610) 593-4556.
You could be closer to owning your log cabin than you ever thought.