We are not a sub-prime lender, like those in the most trouble these days.  We are a broker that uses only the most secure FDIC insured banks for our loans.  

Programs are tightening up however.  Banks react to seeing all these foreclosures and lender issues.  The current reaction is to make sure new loans are strong.  So the days of no-doc, stated income loans may be gone for a while.

Be prepared to do a loan that is more conforming to standard guidelines.  This will mean lenders wanting to see higher credit scores, no late payments, and documentation of income.

The loan ratios are also tightening.  For a while the housing market was in double digit growth.  Lenders were comfortable lending 100% because home values were moving up steadily.  Now that home prices have peaked, and are even declining in some areas, lenders are tightening the amount they will loan.

Be prepared for 80% maximum loans.  With most custom Log Home clients, you will have equity in your land and project costs to meet that 80% loan to value without coming in with extra cash.  But keep in mind, lenders will want to see higher reserves too.  So do not spend all your cash on improvements.

If you want to make sure your Log Home dream does not get side tracked, call us today to help lay out a plan that will best suit your needs and the ever changing loan guidelines.