American Log Mortgage

Log Home Mortgage

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American Log Mortgage
Div. of American Home Bank, N.A.
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Loan Type
Construction/Permanent Loan
This structure is called a 'one-step' or 'single close' loan.
No Interest Payments During Construction
A few lenders offer a 'no interest payment during construction' product.
Separate Construction and Permanent Mortgages
This structure is called a 'two-step' or 'two-close' loan.
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Loan Features
Separate Construction and Permanent Mortgages

This structure is called a 'two-step' or 'two close' loan. A local bank typically provides the construction financing with periodic draws.

Monthly interest payments are made to the bank. At completion, a 'take-out' permanent loan is obtained from the bank or a mortgage broker.

The two-step structure is commonly available and widely used. The principal disadvantages are:

There are two sets of closing costs (usually title insurance, documentation and loan fees).
Transfer or stamp taxes are not minimized.

Construction cannot begin until all requirements for the take-out financing are completed.

Your situation (employment, cash reserves, family situation) may change before your permanent loan closes, and you may no longer qualify for the loan.

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