The Log house Project begins........

[ttriff]

We made a 'lift' for our place (it has a walkout basement but no stairs to get there).

Vertically mounted boxed barn door tracks attached to wall studs hold it in position and guide the platform on the first floor. The lower section is supported by sections of Unistrut bolted to the concrete floor.

4 glides or trolleys are barn door units each with a ''puck' made from HDPE (aka white plastic cutting board) acting as dry lubricant against the barn door tracks

Currently a HF 1200lb hoist provides the lift. The upper section is in a closet so it's pretty noisy due to the cable hoist noise. Eventually the cable hoist will be replaced with a quieter and safer chain hoist.

 

[MotorSeven]

Sorry gang...bad news. After a couple of power surges yesterday my satellite internet would not work. I spent an hr on the phone this morning talking to the tech(s) and the determination was my modem was skewed and a service call needed. So I left to run an errand, come home and noticed the power has been off AGAIN...so what the heck, I try the computer and wala...it's working:confused3: I call the power company to ask what the heck is going on and get the "we have no record of any failures in your area"....

{Rant on}:
Then, after our application for a re-finance has been in for 2 weeks we get a call saying DENIED. It seems the underwriter didn't like our tax return and this is after the agent told us to "make sure you show a farm profit on your taxes this year" as one of the hoops he made us jump through. Well, this is Farm Credit, and we have a small farm that is in it's second year of producing marketable hay. Apparently, a farmer is supposed to go out and by thousands and thousands of dollars in equipment, then turn a profit immediately...sheese. The other hoop, was get the house in the "dry" and Lesley's real estate business(year 2) also had to show profit.
So, we did all that was required/requested 8 months ago and it was done in their requested time frame, then get denied. I have to say this makes me furious. We are only asking for a total of 50% of the value of the place in today's market. They claim to finance up to 85%....horse apples:smiley_aafz: As soon as we can we will refinance with another company...Farm Credit(with whom we have been with for 11 years) can pound sand. I know what your thinking, but no, our credit & income is good, no late payments(I missed two in 2003 during a divorce) at all anywhere. Yes- debt ratio is high and the reason is the house build and the whole reason for the re-finance. What I think their problem is a blatent act of homeowner builder discrimination. I am sure if I had a contractor things would be peachy...while spending 4x more money
{Rant off}

So, the spiral stair and the "elevator" is out:laughing: We are just going to keep plugging along and finish the interior. The well and septic will have to be last when funds are available. We are close, I know we can do it even after getting kicked in the teeth.

Time to go tedder hay for the "profitable farm"........

 

[brin]

Motor...the underwriter is probably spooked because you do not have a well or septic yet and the house is not complete...they are afraid some homeowner/ builders lack the skill to finish or just will not manage their money in a way that will bring the whole house to fruition. Why don't you call the the agent back and ask him if you can get a construction loan to specifically add the well, septic and other things that must be bugging the underwriter and then go for the permanent financing. The other option, just go to a local bank and ask for the construction loan to finish up...and take the loan officer out and show them what you have done and how close you are...Just a thought.

 

[firefighter9208]

I think a lot of the problem is the underwriters don't like "non conventional" homes. AKA log homes. What you have is a beautiful home, but to them it would be very hard to sell if you were to foreclose, because the type of construction would severly limit the buyer base.

When we constructed our home in 2001 we were our own contractor. The home is 3200 square feet brick/vinyl heated and cooled. We were asking for a $125,000 construction loan to build the house. We were denied by three lenders, because our house wasn't conventional to the community. We live in a small farming community that didn't have comparable houses at the time. Most were in the 1200 to 1500 square foot range.

We finally found a small hometown bank to loan us the money. When the house was completed it appraised for $300,000 and we had to go to a mortgage company to get the permanent loan.

We refinanced last year, when rates dropped to 3 1/2% and still had problems getting a "comp" for the appraisal. They had to go 10 miles away.

I have included a couple of pictures for reference:

Chris

 

[GGB]

Lack of "comparables" has been an issue for a lot of folks, us included, thanks to the housing decline. We wanted to refinance to take advantage of the lower mortgage rates, but can't because there have only been a few sales in our area, and foreclosures have hurt the remaining values.

Couple in the much more restrictive lending policies the banking industry has been forced to adopt and it is even more difficult. And this is at a time when the housing market needed relaxed lending policies to stimulate the economy.

The reality is that when we need loose lending, we see tightened lending practices, and when we don't need loose lending practices, that's the case.

 

[woodlandfarms]

There has not been a 40 acre parcel for sale in our area for more than 3 years. No comps, No loan, Nightmare. We have been told to never show income on the farm on our tax returns. We are trying for a refinance right now, figgin nightmare.

 

[tnmike]

Rick that sucks. I would put the septic in first. You can always install a catchment system or use the spring until you save up the money for a well. .You could put a large tank above the house and fill it from your spring manually if you had to. Keep on plugging. It will all work out.


In all seriousness an elevator would not be that expensive and. Would take up.less room than a staircase. Take this time to smoke it over.


I don't think the loan problem is you. Its nationwide and it stems from all the outstanding loans that are underwater and the number of foreclosures in the pipeline. The economic turmoil in this country is far from over. The
banks are spooked. My son cannot find a bank who will make a VA loan.

You can have momentary outages caused by faults on the line under an oil circuit breaker that cause havoc with PC hard drives. The power company does not recognize these as actual outages. A UPS is a must in a rural area.

 

[MotorSeven]

Yeah, the whole mortgage situation coupled with a homeowner build coupled with a non conforming. Doesn't a "non conforming guy" building a "non conforming house" cancel each other out? :laughing:

It's funny, when we were in the Farm Credit office, right there on the counter was a brochure...."Build your Dream LOG HOME"......gimmie a break. On top of that the loan officer working on our "case" said that he estimated our completed house to be worth .....wait for it.......$200K. That would put the value of our 100 ac w/ log home at almost half a mil.....and silly us are asking for a total of $205K. We must be outta our minds eh?

We talked to a local credit union that promises to take us on after the house is finished and their interest rate is 1% lower than FC. Their closing costs are $500...Farm Credit was going to be $4,000. So maybe this is all happening just to save us some $.....eh?


Back to the build..................:thumbsup:

 

[MotorSeven]

Solar Kiln getting moved to it's resting place:

 

[MotorSeven]

I used roofing tar to set the glass in so it can flex a bit when being moved:

The glass is sitting on rubber blocks:

 

[tnmike]

I just saw on the news where JP Morgan Chase announced an unexpected 4 billion dollar loss. Not a good sign from the largest bank in the nation.

 

[Kyle_in_Tex]

Motor7, I'm not sure what to say but since you are doing things "outside the box", the finance company doesn't know how to deal with this. I think I remember you saying you are using multiple credit cards to build with. This might cause your credit score to take a nose dive. Any card debt over half the allowable limit is a negative to your score. Plus, any extra cards or closed out cards cause a negative in some respects.

I would recommend a small town bank locally where you can go in and talk to the person making the loan. Get them out to see your progress, give them an itemized list of expected expenses, and offer to pay a bit extra interest until the home is finalized. If that doesn't work, find out what church they attend and make yourself noticed...:laughing: They used to say you can't get a loan unless you can prove you don't need it....

Good luck.

 

[tony Cecil]

I`v followed your build for a long time, and it has turned out to be masterful....Speaking about the re-finance.....First do you both have friends that have lived there their whole lives, with family? They could be a good source of information on how to get something done....Second if it is a re-finance , does the Farm Bureau have the original mortgage? I ask this, as it is very difficult to make a living on a small farm, unless it is a niche market...Many people have lost their primary source of income, and fallen on hard times, with debt that was accumulated during better times......Therefore the reluctance to loan...

If you had a previous banking relationship in another state, it might behove you to contact that person for a possible reference to a banker in your area....and if not I sure would ask the local friends for some advice.....Tony

 

[MotorSeven]

Kyle, don't get me going on credit scores and the three rip off company's that make us grovel to them. I learned all about their BS back in '03 and made it a project then to learn everything about how they "operate" in a constant state of contradiction. Anyway, no our scores are fine...well over 700. Yes, our debt ratio is the only negative but any first year economics student would understand why after hearing our story and looking at our receipts and accounts...it's all documented. Yeah, I am outside the box, so far it has worked for me, so I am staying there

Tony, yes we have been with them here in TN since I bought the land in '01. Never missed a payment, never been late. Matter of fact it's a direct draw right out of my account twice a month, and we have always paid more on the principal every month. But, then again I must be an idiot, because thousands of folks who bought McMansions, then oddly enough could not afford them[shocker] have had their principal amount reduced by their banks and their payments cut in half so they can continue to live the good life. Heaven forbid that a guy build his own house that he can afford...what a crazy idea.

Oh, and the only reason we wanted the re-fi was to get it done quicker. It's not that we can't afford to keep chipping a way at things and pay for them as money comes in. That is what we have done for over two years, so we will just - Charlie Mike(continue mission).........

 

[B7510HSD]

Kyle, don't get me going on credit scores and the three rip off company's that make us grovel to them. I learned all about their BS back in '03 and made it a project then to learn everything about how they "operate" in a constant state of contradiction. Anyway, no our scores are fine...well over 700. Yes, our debt ratio is the only negative but any first year economics student would understand why after hearing our story and looking at our receipts and accounts...it's all documented. Yeah, I am outside the box, so far it has worked for me, so I am staying there

Tony, yes we have been with them here in TN since I bought the land in '01. Never missed a payment, never been late. Matter of fact it's a direct draw right out of my account twice a month, and we have always paid more on the principal every month. But, then again I must be an idiot, because thousands of folks who bought McMansions, then oddly enough could not afford them[shocker] have had their principal amount reduced by their banks and their payments cut in half so they can continue to live the good life. Heaven forbid that a guy build his own house that he can afford...what a crazy idea. My son bought a little 2 bedroom starter during the boom and now need a bigger place but they owe 100,000 more than it's worth now!

Oh, and the only reason we wanted the re-fi was to get it done quicker. It's not that we can't afford to keep chipping a way at things and pay for them as money comes in. That is what we have done for over two years, so we will just - Charlie Mike(continue mission).........

Your doing a great job keep up the good work!!! Don't let this get you down!!

 

[MotorSeven]

There is an "appeal process" with FC, so we will do that. Not to try and get them to change their minds, but to point out their total lack of common sense, the outright lies and all around bad business practice. That way I can say my piece and they will know "why" when I pull my loan from them.

I have to admit, it got to me. Down at first, then angry, now it's time to let it go and get back to work. ...I have a Solar Kiln to finish and get fired up.

 

[tnmike]

Rick if I were in your position I would take this situation as a challenge to finish the house without any funds from the SOBs. If if took another year it would be worth it to me. You have the perfect situation and there is really no hurry.

 

[MotorSeven]

And now for some good news....in celebration of me being a high credit risk.....I decided to pay off my Kioti.....it's mine all mine(said with a high pitched British accent, then an insidious laugh):drink:

 

[tony Cecil]

I also financed my Kubota , and the zero percent was why...I`v been paying five hundred a month, it seems like my whole life, and am going to pay it off just as you did...

I have a good friend of mine who over financed, and got in trouble....He sold off an asset, and paid `down and out` another debt......Be careful of paying off debt, keep the money to yourself until you feel comfortable about the future banking situation.....My friend has almost lost everything, as he does not have the dollars to be flexible.....No one needs to experience what he has gone through Tony

 

[MotorSeven]

......Be careful of paying off debt, keep the money to yourself until you feel comfortable about the future banking situation.....

In that case I would not pay off a debt for a very very long time since the whole financial situation(among other things) is teetering on a tall steep slope of loose slate.