I've been trying to refi my log home on 2.3 acres in Snohomish County, Washington since December.  My wife and I have excellent credit, both close to 800 FICOs, debt to income ratio of 28%...and we cannot refinance.  Our last appraisal had zero comps that were log homes, only stick built.  My guess is that since lenders require comps that are log homes and they are rare, that no one is able to get a mortgage to buy (or sell) a log home. Thus, I can't get any comps.  I'm feeling screwed here.  Fannie Mae owns my mortgage.

Is there some way to get around this catch 22?  My mortgage broker tried to apply under the stimulus bill's "refi-plus", hoping that it wouldn't require an appraisal, but it asked for one, putting us back at square one. We now must wait for someone to sell a log home nearby (for cash) so we can get a comp. Good luck having two comps that are log homes.  Does anyone know what triggers a requirement for appraisal with the refi-plus program? Is it random?  Once my broker has applied is it to late to try again?

I was advised by someone to try an FHA loan. Is this a possibility? Can someone at Fannie Mae help me with this problem since their guidelines are what is screwing us?

Thanks,
Alan

What does your home appraise for when using non-log home comps?  How large of a loan would you like to get?

The lenders that are looking to sell your loan on the secondary market are worried that they will not be able to sell your mortgage without showing the marketability for your "unique" home.  A lender that doesn't sell it's loans (aka portfolio lender) may have different guidelines and may not need log home comps.

You are in a tough position and will find it near impossible to refinance.  I would suggest to ask your broker to contact a few portfolio lenders as kent suggested. 

Also, try a local credit union that is familar with your area. 

In recent times I would have gone to JP Morgan Chase. Currently they only deal direct. You may want to try there.

Good Luck

Tony