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Owner-Builder Construction Loans

Owner-Builder Construction Loan Application

Many people want to take charge of their own construction loan for building their new house. However, traditional lenders like banks, are wary of these loans because of the risks involved.

Experienced owner-builder lender

We have considerable experience with owner builder construction loans and would like to make you a construction loan for your new home.

We offer construction loans for the owner builder. This program includes, conventional, kit or log home construction financing, and allows you to self build your home. The owner builder loan gives you the easiest, most flexible Construction Loan available that will help you save money on the construction of your new home. Whether you are building a home for yourself, for investment, or for rental or resale, our owner builder construction loan is designed to get your loan done and your house built.

Fill out your free construction loan application online and get a response within minutes.Construction Loan Application

Construction Loan Application Documents

Your loan application will be approved subject to an appraisal. The appraisal will be based on the plans and specifications that you have had prepared by a professional. You will be asked to produce architectural plans with all of the details of construction plus the specification sheet outlining the cost of each material to be used in construction. That will include everything from insulation to toilets.

Risks of Being an Owner Builder

Limited Knowledge of Construction Process

Many owner builders come to the process with a limited understanding of the construction process. Building a house involves many pieces starting with understanding local government permits and regulations. When you purchase your land to build, that building lot comes with many restrictions regarding the use of the land. These include zoning and environmental issues such as elevations, setbacks, easements, deed restrictions, septic tanks, and drainage.

Sub Contractors

As the owner of your project, you will have to hire the sub-contractors who will work on your project. You want to assure that they are licensed and bonded and have completed similar work in the past. Since you will be paying the sub-contractors yourself you will want to get a "release of lien" from the subcontractors when they are paid. You will be responsible for the quality of work passing regulatory inspections and calling back the sub-contractor to fix defects.

Construction Draws

When your construction loan is approved, the lender will set up a construction fund and disburse funds as construction is completed. The initial disbursement may be for the land purchase and subsequent disbursements will be made in accordance with a draw schedule. If you overspend your budget during the construction period, the lender will not make up the difference. This is a chronic problem with owner-builders and one of the reasons banks do not make owner-builder loans. For more information about new home construction visit our Construction pages using the link at the top of the page.