Have you been dreaming of building a weekend cabin or custom Knotty Pine home? Do you find yourself wondering how you’re going to fund the full project especially in these uncertain times? Don’t let concerns over financing derail your dreams – read on to find out more about financing your Knotty Pine Cabin.


We often get asked whether our homes and cabins can be financed and we’re here to say that they absolutely can! If you’re looking to build a Knotty Pine year-round home, cabin, garden suite, or guest house, but don’t have all of the funds to pay for it out of pocket, one option is a construction loan.

What’s a Construction Loan and How Does It Work?

A construction loan is a short-term loan used to finance the construction of your new cabin or home. Unlike a traditional mortgage where funds are dispersed in one lump sum, a construction loan disperses funds in draws based on the stage of construction. Prior to funds being released, your lender will have an inspector visit your build site to track progress and, from there, release a portion of the funds based on the completion stage. This allows you to pay your contractors in stages based on work complete.

Once construction has been completed, the construction loan is either paid off or converted to a permanent loan, depending on the type of construction loan you obtain. In the vast majority of cases, our customers obtain a construction-to-permanent loan, where the the construction loan is converted to a permanent mortgage with typical principal plus interest payments once the construction process is completed; however, if you’re in the process of selling your house and plan to use the proceeds to cover the construction costs for your new home, a construction-only loan could be a better option for you.

Do I have to own land to obtain a construction loan?

While owning land is seen as an asset when it comes to obtaining a construction loan, it’s not necessary. Construction loans can be used to both purchase the land and build the cabin or home.

Other Financing Options:

We know everyone has a unique financial situation and construction loans are just ONE of the many options! If you’re looking for a short term loan, a line of credit might fit the bill. You may own your land free and clear and need some funding for simply the structure itself.  No matter the scenario, our goal is to help you achieve your project dreams without the stress!

To assist with all of your financial questions and needs, Knotty Pine Cabins has a fantastic Mobile Mortgage Advisor that we consider to be an integral part of our team.  Our past clients can definitely agree that it makes the financing process seamless when they are dealing with a lender  that is familiar with our product and is willing to look at many different financing options depending on your unique situation. Give us a call at 1 877 854 2224 to set up a virtual appointment with one our knowledgeable sales representatives today!