Foothills of the Appalachian Chain
Alabama is home to the southern most foothill, or “wrinkle” of the Appalachian Mountain chain, Double Oak Mountain. Therefore, for all intents and purposes, Double Oak Mountain. could be referred to as the anchor of the Appalachian Chain. Regardless, the proximity of Birmingham to the “wrinkles” of the Appalachian Mountains affords residents looking for a mountain retreat or log home, a natural woodland environment in which to build.
Building a Log Home
Building a log home in Birmingham, Alabama is similar to building a log home off in the mountains or even building a “traditional” home in Birmingham. For instance, you will need to secure financing, locate a lot, find a builder, then wait for the home to be completed. Recently, I have been receiving information requests involving the purchase of log homes in Birmingham and beyond, so I thought I would give a short detail of the steps involved to help people get started.
Log Home Financing
Like other pre-construction loans, you will need to contact your mortgage professional regarding financing your log home. This loan should be similarly structured to any other new construction loan, but your mortgage lender will be able to assist you. Our best advice is the same as any home shopping scenario. Get Pre-Approved prior to shopping. This will greatly assist in your negotiating when working out the details on your log home’s build cost.
Finding Land in Birmingham:
Locating the right piece of property for sale on which to build a log home can be tricky. Especially if you are attempting to buy land in Birmingham, Alabama or in one of the surrounding areas. Your best bet would be to contact a local Realtor ® that understands your real estate needs and can assist you in locating property. Many neighborhoods in Birmingham have strict restrictions on the types of homes allowed to be built in that particular neighborhood, so be prepared to look for land outside of established neighborhoods. Parcels of land in varying sizes are for sale throughout the Birmingham area, yet a thorough search of the Birmingham MLS may be needed to ensure success. If starting a search without the help of a real estate agent, I would recommend beginning with lots or parcels of land greater than 1 acre in size. This should eliminate most neighborhoods in the Birmingham area and eliminate the need to sift through unavailable lots.
Log Home Builders:
Once you locate the right lot, find a builder that is familiar with the construction of log homes. Although some log home manufacturers, such as Southerland Log Homes, offer pre-numbered “kits” that can be built by the purchaser, I would recommend hiring a professional licensed contractor to get the job done. (Unless, of course, if you are going for the extreme log home experience, then all you need is a few twigs, some strings, and mud so there isn’t much need for a contractor). A professional builder will overlook the project to ensure everything is built to code.
When you have located a builder or two that has experience building log homes, even if it is from a kit, interview them. Get to know them. Get references. This process should be no different than if you are building a spec house or a custom home. If hiring a person to overlook and build your log home, ensure that they are qualified by checking their references, past jobs, and current builds. If the quality is acceptable on their other jobs, odds are in your favor that they will put forth the effort to ensure your home is built at the same level of quality.
Building a Log Home
Once you have secured your financing, land, and builder, building the log home should seem like a breeze. But, prepare for the unexpected. Like many residential builds, the building of your log home can experience delays that can interfere with the original schedule. Inspections will need to be completed by the city, or county, along with any that your mortgage lender requests. Rain can slow things down as well. Be patient though, these types of occurrences are why we recommended the experienced log home builder. For when delays happen, an experienced home builder will be able to navigate through the delays and obstacles by coordinating his subcontractors to maximize their efforts while sticking to the timeline.
Live the Log Home Dream
Ok, it may not be everyone’s dream to live in a log home in Birmingham, Alabama, but why not? Basically, building a log home in Birmingham is really no different than building a custom home in a distinguished neighborhood. The basic outline of building a home is the same, except that in the end, you have a log home instead of brick or hardy plank exterior home. About the only difficulty I have discovered is finding the right piece of land for sale in Birmingham that could “hold” a log home and not look silly.
Whether you are in urban Alabama or rural, getting loans for business is not a distant dream anymore. Let’s have a look at some of the prominent financiers of this city who have played a key role in fulfilling many a dreams of aspiring entrepreneurs.
Getting Funds from Small Business Administration:
The Small Business Administration (SBA) provides funds under two types of programs: The SBA 504 CDC loan program and the SBA 7a loan guaranty program.
SBA 504 Loan Program:
This loan program is designed to provide long-term loans for fixed assets. The small businesses can use the funds for acquiring, building, expanding, or renovating property. They can also use it for buying equipment that is life-long.
Under this loan program, the SBA gives 100 per cent guarantee of a debenture, which is sold to the Federal Financing Bank, through a Certified Development Corporation (CDC). It is sold for up to 40 per cent of the costs of fixed asset.
In order to get this loan, you have to submit a proposal to a loan committee of a licensed development corporation. This committee passes your application to the SBA.
The following are the CDCs that help the small businesses in loan application:
o Alabama Community Development Corp.
o Birmingham City Wide Local
o Southern Development Council
o Greater Mobile Development Corporation
SBA 7a Loan Program:
Under this program, loans are provided on long-term period for either working capital of fixed assets. The good thing about these loans is that they require no particular job creation.
SBA authorizes the financial organizations to work as Small Business Investment Companies (SBIC). The SBICs are owned privately and are akin to venture capital companies.
Southern Development Council:
The Southern Development Council works throughout the state. A non-profit organization assists the small businesses to get long-term funds on fixed assets to expand their business in Alabama. The SDC uses the sources of public financing programs as well as Alabama banks to finance the businesses.
U.S. Department of Agriculture-Rural Development:
The U.S. Department of Agriculture (USDA) is a boon for the non-farming community of rural Alabama. The USDA does not provide direct loans, but loan guarantees to the rural entrepreneurs. The program is similar to SBA 7a loan program.
The loans are provided for up to 30 years on fixed assets, 15 years for heavy and light equipment, and 7 years for working capital.
Besides this, the USDA offers low interest loans for developing water infrastructure, health services, public safety services, and other social services for the welfare of the community of Alabama. The interest rates are fixed based on the income of the family.
Thus, Alabama has great opportunities to start business and flourish it. A slew of loan programs are there to finance your dream projects.