“We always encourage anyone talking to
lenders — whether or not they’ve run into
financing problems — to have the lender
talk to us. That way we can help make sure
the lender can deliver a loan that will work
for a log-home builder.”
Patti Urban, head of sales for Golden Eagle Log Homes
and your log home representative for mortgage brokers or direct lenders they’ve worked with recently that have had the best programs for log home owner builders.
2. Make sure your credit will pass. Go to FICO.com and get your credit score. If you’re a couple, be sure to get both your scores, because lenders now qualify you on the lower of the two scores (it used to be a blend or the higher of the two scores). All the lenders I’ve spoken with in today’s mortgage world are only working with people with a 620 or better FICO score for construction lending.
“Higher is definitely better,” says Bob
Siskoff, mortgage banker at the M&I Bank midwest office. “I was working with a couple last month who had a 685 low score with 20% down and they still had to pay a point in fees in order to get their loan. Of course, that was better for them than having to pay a higher interest rate the life of the loan, because they intend to retire there.”
If you have credit problems with more than two missed credit card payments or anything else that brings you down below the 620 mark, figure you will have to pay excessive rates for your mortgage. Consider postponing your plans a year while
NEVILLE LOG HOMES
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81 W. Carleton Rd - P.O. Box 188 Hillsdale, MI 49242 1-800-972-7693 FAX: 517-437-4230 www.loghomesupply.com menco@menco.com
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