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- Log Cabin Financing—Know Your Options
- Log Cabin Loans
- Alternative Borrowing Options
- Borrowing in 2025
- Common Questions About Log Cabin Financing
Check out our complete guide for more information on planning for your new Log Cabin!
All of the options listed below are possible ways to make a log cabin purchase possible. However, none of the ideas listed below should be taken as financial or legal advice. It is your responsibility to work with experts that your trust for lending.
Log Cabin Financing
Know your options
It can be intimidating to start thinking about log cabin financing, especially if you know you can’t pay for your new log home completely upfront. This is why we’ve broken down several options for you to explore as you plan for your purchase! These financing options include:
- Home Equity Loans
- Construction Loans
- Mortgage
- Share Your Cabin
- Borrow Money From a Friend
- Pay With a Personal Check
Although all these options may seem overwhelming at first, paying for your log cabin will be easier than you think.
At Zook, we require a 20% deposit at the time of order as well as a 70% deposit when the site is prepped and ready for delivery. The remaining 10% is due when the job is completed.
Payment methods vary, and some customers combine multiple financing options to purchase their log cabin. Since log cabins are a significant investment, it’s important to explore all available options to find the best fit for your needs. Here, we’ll break down the most common financing methods we see to help you make an informed decision.
Log Cabin Loans
Take Out A Home Equity Loan
A home equity loan could be a practical option for many customers looking to finance their log cabin. A home equity loan (HEL) is a type of loan that lets you borrow money using the equity in your home as collateral. If you’ve been paying on your home for several years and its value has increased since purchase, you may easily qualify for this loan—especially if you have good to excellent credit.
If you choose to pursue a home equity loan for your log home, it’s important to make paying it off quickly a priority.
Construction Loans
Construction loans are short-term loans that can fund the building of a residential home (or a Prefab log cabin), including the purchase of land, foundation, utility set-up, permit applications, and the structure itself. Some construction loans also can be turned into mortgages after the log cabin is completed. There are two common types of construction loans: standalone construction loans and construction-to-permanent loans. A standalone loan finances the building phase and typically only has a year-long term, while a construction-to-permanent loan converts into a mortgage when construction is finished.
Construction loans may be hard to qualify for. Borrowers should have a good credit history, a solid financial standing, and a sustainable income.
Log Cabin Loan Information To Bring To The Bank
After you’ve chosen your log cabin loan type, you should gather the following information for the bank to ensure an easy and stress-free application process! You will likely need:
Final Construction Blueprints
You will get these as you work with Zook to finalize the design and plans for your new Log Cabin! Your bank needs these to accurately estimate your home’s cost.
Building Permit
You will need to have a building permit to show your bank before you can close on your loan. You can apply for a permit with your local city or town’s building and planning office.
Building Contract
You will also get this as you work with us! During the design and planning phase, we will sign a contract that includes the costs and specifications for your new log cabin.
Cost Breakdown
This includes a list of the cost of materials, labor, and other expenses. This will also be easy to obtain with Zook as you go through the buying process.
Survey of Land
A survey or plot plan that includes a legal description of the property and shows the exact location of your land. You can get a survey through your local Property Assessment Office or wherever your county manages taxation.
Every Bank is Different!
Be sure to check with your local branch or lender for a full list of everything you need to apply for a loan.
You will also need your own personal financial information. This may include your income and bank statements, employment details, your credit score and history, your personal or business tax returns, and other identification documents.
Alternative Borrowing Options
Take Out A Mortgage On The Property
Mortgages are the most common ways to finance home purchases, including log cabin financing. Mortgage loans are loans used to purchase or maintain a home, land, or another type of real estate. The borrower pays off a mortgage over time in a series of regular payments split into the principal and interest. The property or home itself then serves as security for the loan.
Those who choose to finance their log cabin with a construction loan often also use a mortgage to cover costs after one year.
Mortgages come with various rates and terms, such as fixed-rate or adjustable-rate options, and loan lengths typically range from 15 to 30 years. Choosing the right mortgage is essential to ensure it fits your budget and lifestyle. The true cost of a mortgage can be measured using the Annual Percentage Rate (APR), which includes the interest rate and other fees.
To estimate your monthly payments and overall loan cost, you can use an online mortgage calculator or speak with a lender. Consulting a financial advisor can also help you navigate the process and choose the best financing option for your log cabin.
Share The Cost Between Family Or Friends
Figuring out how to share the cost of a log cabin can feel tricky, but many people have found it helpful to team up with others who want the same thing. Sharing the cost makes it more affordable and can be a great investment for both real estate and quality time.
To help, check out our table on how to split the cost of a log cabin for a shared cabin! If you’re considering co-ownership, be sure everyone involved has done their research, set clear expectations, and is on the same page before purchasing your new log cabin.
Borrow Money From A Relative Or Friend
If you have a trusted relative or friend who is willing to help finance your log cabin, this can be an alternative to traditional loans. Borrowing from someone you know often comes with more flexible repayment terms, such as lower or no interest, and can save you from the stricter requirements of banks or lenders. However, it’s important to approach this option with care and transparency.
Be sure to clearly define the loan terms—such as repayment schedule, interest (if any), and other expectations—to avoid misunderstandings. Putting the agreement in writing, even if it’s informal, can protect both parties and ensure the arrangement remains a positive experience. While this option may not suit everyone, it can be a cost-effective way to bring your dream log cabin to life.
Read our tips on How To Borrow Money From a Friend or Relative.
You Can Write A Personal Check
If you have the available funds, writing a personal check can be a straightforward way to finance your log cabin. This option eliminates the need to borrow from lenders or pay interest, making it one of the simplest and most cost-effective methods of log cabin financing. By using personal savings, you maintain full control over the transaction and avoid the long-term financial commitments associated with loans.
However, before committing to this option, ensure you have enough in your budget to cover both the upfront costs of the log cabin and other potential expenses, such as construction or furnishings. It’s important to balance this financing option with your overall financial stability.
Borrowing in 2025
Compare Your Options
| Home Equity Loan | Construction Loan | Mortgage | Share Your Cabin | Borrow from a Friend | Personal Check | |
| Down Payment | 10-20% | 20-25% | 10-15% | Varies (Split) | None | None |
| Loan Term | 5-30 Years | 6-24 months | 10-30 Years | Varies | Flexible | N/A |
| Monthly Payment | Yes | None | Yes | Yes, Split | Yes | None |
| Approval Speed | 2-4 weeks | 3-5 weeks | 4-6 weeks | N/A | N/A | N/A |
| Credit Score Needed | 620-680 | 680-720 | 620-680 | Not required | Not required | Not required |
| Zook-20% Deposit at Order | Covered by loan | Typically covered | Covered by loan | Split among partners | Paid upfront or loaned | Paid upfront |
| Zook-70% Due at Site Prep | Covered by loan | Drawn from loan funds | Covered by loan | Split among partners | Paid or borrowed | Paid upfront |
| Zook-10% Due at Completion | Covered by loan | Drawn from loan funds or converts to mortgage | Covered by loan | Split among partners | Paid or borrowed | Paid upfront |
*The content in this table reflects average and should not be considered financial advice or guarantees. Contact your lender for the most accurate information to you
Create a Lasting Family Legacy with a Log Cabin
A log cabin is more than just a getaway—it’s a legacy that brings loved ones together for generations. Instead of passing down material possessions, why not establish a shared family retreat filled with memories, traditions, and togetherness?
Beyond its sentimental value, a log cabin is also a smart investment. It enhances your land’s worth, turning it into a valuable long-term asset and a cherished escape. To keep your cabin in top shape for years to come, be sure to check out our Log Home Maintenance Page for expert care tips.
Finance Your Log Cabin and Start Building Today
We know that financing and planning a log cabin is a big decision, and we’re here to guide you every step of the way—not just with the design and delivery but throughout the entire process. Our team is here for you if you have questions or want expert advice based on our experience.
Get a quote to start your journey to owning your dream cabin.
