Thread: Owner Builder Financing?

Do any of you have experience and insight on owner/builder financing? My wife and I are planning on building our own house next spring and are looking at financing options. I know many of you responded to my thread about building my own house, now I need advice on paying for. Out of pocket is out of the question. We'll have some money to put down but nothing significant (no 20%). Let me know what you know. Thanks
Erik

I built a house and did what was called a "construction loan" at the time. Basically I agreed with the builder ahead of time on certain stages of construction. When a stage was completed to my satisfaction I had the bank cut him a check for xx% of the total. Worked out very well because the contracter I was using ended up being a nightmare so he didn't get paid until things were done right.

I didn't see your other thread but I'll just say that I will NEVER build a house again. I just don't have the patience for it.

Originally Posted by kenr74

I built a house and did what was called a "construction loan" at the time. Basically I agreed with the builder ahead of time on certain stages of construction. When a stage was completed to my satisfaction I had the bank cut him a check for xx% of the total. Worked out very well because the contracter I was using ended up being a nightmare so he didn't get paid until things were done right.

I didn't see your other thread but I'll just say that I will NEVER build a house again. I just don't have the patience for it.

I'll be building this house COMPLETELY on my own or with the FREE help of friends. I can't afford to hire anybody.
Who did you take out your loan through?

WAMU. Not sure how it would work doing it the way you want to.

the same way the bank wont loan you all the money but they dole it out as the project is completed in stages , They advance the money for the foundation and prep work when you get that done and inspecetd they will advance money for the next stage. That said it may be really hard to get this type of financing done at this point in time and space. It was always harder to get than a normal loan, no bank wants a half done screwed up project on its books., It was always a plus to have clear title to the land and a handful of money . Good luck. Used to be several outfits that once you had the land under contract they would front all land prep work and deliver you ever part and piece to build a house. Miles homes was one do a google on them.

My buddy Nate used US bank for his construction loan,and he said they are screwy to deal with.Try calling Lynn Trueblood in Tilly and see what he can get for ya.We used him for our mortgage and I remember talking to him about that route if we couldn't find a house in our sad price range.

Originally Posted by hsullyc

My buddy Nate used US bank for his construction loan,and he said they are screwy to deal with.Try calling Lynn Trueblood in Tilly and see what he can get for ya.We used him for our mortgage and I remember talking to him about that route if we couldn't find a house in our sad price range.

Thanks hsullyc. What company is Lynn with? I appreciate the heads up. This project won't start until spring at the earliest. I still don't know how much I'll have to continue working at my regular job while building my house either. I'm not sure if I can 'hire' myself to build my house if that makes sense.

Originally Posted by eriknemily

Thanks hsullyc. What company is Lynn with? I appreciate the heads up. This project won't start until spring at the earliest. I still don't know how much I'll have to continue working at my regular job while building my house either. I'm not sure if I can 'hire' myself to build my house if that makes sense.

Never mind. I found his contact info online!!!

You can pay your self for labor to build your house,but you have to pay interest on that money.The way they do it is you are allowed a certain amount of money for each stage,what ever money left is yours kinda.The more pennys you can pinch the better.We did a duplex a few years ago at 67.75 a square foot finished.We bid it at around 125.00.Try to break the hole house down to the nails to try to get your sq foot price as close as possible,with a little unforeseen of course.Most likely the lower you can get the more likely they are to lend.Honestly anything I can do to give ya a hand please let me know....

Originally Posted by hsullyc

You can pay your self for labor to build your house,but you have to pay interest on that money.The way they do it is you are allowed a certain amount of money for each stage,what ever money left is yours kinda.The more pennys you can pinch the better.We did a duplex a few years ago at 67.75 a square foot finished.We bid it at around 125.00.Try to break the hole house down to the nails to try to get your sq foot price as close as possible,with a little unforeseen of course.Most likely the lower you can get the more likely they are to lend.Honestly anything I can do to give ya a hand please let me know....

Thanks for the offer. Shoot me a PM and with your name and number and if this thing looks more promising I'll give you a jingle.

Erik

Originally Posted by kenr74

WAMU. Not sure how it would work doing it the way you want to.

WAMU was just bought out by Chase they had my Mortgage. Try the local credit unions.