Log Homes - Is a Log Home In Your Future?

Many people dream about a log home in their future but never get around to making their dream come true. Here's how to get past the hurdles and start living your dream.

Finances are one of the most common reasons many people never live their log home dreams. The reasons may only be perceived or they may be real. But even if real, it may be possible to overcome the obstacles.

First, you'll have to decide on a basic floorplan and house size. Selecting one of the standard plans from a log home company's portfolio simplifies this process. The company can tell you the price of the log "kit" and may be able to give you a "turn-key" estimate for the finished house. If not, you can make a very rough estimate by assuming that the final turn-key cost will be between two and three times the cost of the kit. This estimate does not account for the cost of land.

Understand that this is simply a crude way of approximating the cost of the home of your dreams. The objective is to determine if you are even in the ballpark of a cost that you can afford.

Consider the home that you now live in and what price it might bring if you sell. Subtract the amount you still owe on your mortgage plus real estate commissions to determine your equity. This equity can be applied to the purchase of your log home as a down payment, or used to purchase land. Also consider any savings, investments, or inheritance funds you have that might be applied.

Use an online calculator or visit a bank to determine how much you might be able to borrow. This will depend on your current income and debt load. Most lenders use a formula that limits your future mortgage payment, plus taxes and insurance, plus your existing debt load (credit cards, car payments, etc.) to 36% of your gross income. This determines your maximum mortgage amount. Add your down payment and you'll get the amount you can afford to spend on your dream home.

If you find that your dream home is affordable, great. If not, you might be able to scale back on your home plans or find additional funds, or both. Sometimes, simply waiting a few years solves the problem. Often, when you have a dream and are committed to it, you will be able to find solutions through sheer determination.

Al Hearn is owner and operator of Log Home Advisor (http://www.LogHomeAdvisor.com) where log home enthusiasts can find helpful information, advice, cost calculators, and affordability calculators.