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Many decisions must be made when building a log cabin home.  One of the most important is deciding on log cabin financing.  Conestoga does not offer financing, however we will gladly share our knowledge of mortgages and construction loans with you.  Our experienced team will assist you with the loan application and through the lending process providing you with the necessary information and documentation.  We have worked with various lenders and would be happy to provide a list of lenders used by other customers.

The Loans

Typically two loans are needed to build a log cabin home.  One is a short-term construction loan and the other is a mortgage.

Many lenders offer construction loans to cover expenses during the log cabin building process.  These loans are usually available for single unit, detached properties that are primary residences or second homes.  The terms can be fixed rate or adjustable.  A schedule of draws is agreed on by the home owner, builder and lender.  Conestoga can help you set the schedule.   Loan disbursements are made as work is completed on the log cabin.  During construction, the home owner makes interest only payments calculated based on the outstanding loan balance.

Once construction is complete, often construction loans are converted into permanent mortgages.   This “one-time closing” is beneficial because there is no additional paperwork and the cabin owner saves on recording fees and closing costs.  Some lenders allow the interest rate to be locked in before the conversion.   At this point, scheduled monthly payments of principle and interest plus escrow, if applicable, will take effect.  More on construction loans can be found on our blog, “What is a Construction Loan“.

Conestoga Log Cabins & Homes wants the entire building process to be as smooth as possible for all of our customers.  Our team is there through every step to ensure that you log cabin dreams come true.