How to Finance a Lake or Cabin Home

Home Equity Loan or Line of Credit

If you’ve built up equity in your primary residence, you may use it as collateral for a loan to build your lake or cabin home. And this can be a fantastic option if you have excellent credit that qualifies you for a loan with a competitive interest rate.

Personal Loan

If you don’t have equity in your primary residence or don’t qualify for a home equity loan, you may finance your lake or cabin home construction with a personal loan. People obtain personal loans from credit unions, banks, and online lenders and typically have fixed interest rates and terms.


Cash is the best way to finance a lake or cabin home construction. And this means you’ll need to save money in advance or obtain financing from other sources, such as family or friends. If you have ready cash, you won’t have to worry about making monthly loan payments, and you’ll own your home outright once construction is complete.

Whatever financing option you choose for your lake or cabin home construction, shop around and compare interest rates and terms before committing to a loan. And if you can pay cash for your construction project, that’s the best way to go!

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