:!: Upon user registration, your account will be manually qualified by a member of the team. Unfortunately, this may take a few days. However, the process keeps the information here relevant and spam free so we thank you for your patients. You will be emailed once your account is ready to go.

Construction loan?

New build house building, green homes, green building and sustainable house building ideas, and sustainable construction solution
Posts: 1
Joined: 30 Dec 2016, 14:33

Construction loan?

Postby DaveThompson » 31 Dec 2016, 14:26

What is the best way, if any, for a person who is not a licensed GC to get a construction loan for building their own house?
Most of the big banks want you to have a GC or licensed builder before loaning you any money. Example: I went to the bank and they pre approved me for the mortgage loan but really shied away from the construction loan questions.
Any thoughts?

Posts: 10
Joined: 14 Dec 2010, 14:43

Re: Construction loan?

Postby Steph » 02 Jan 2017, 02:41

Most will want proof of proficiency and 20% down.. both are difficult to do. Start with a mortgage broker - they will have more resources to choose from.

Posts: 2
Joined: 16 Dec 2010, 10:48

Re: Construction loan?

Postby madarry » 10 Jan 2017, 21:39

Call around and you should find a bank that is willing to finance owner/builder loans. Check with "Help You Build" type companies and see who they use. Some banks will even count sweat equity as part of the down payment. It is much easier however to obtain a loan if your building lot is paid for.

We were able to obtain a construction loan without problems at a good rate and we will be the owner/builder without a contractor licensee. One factor I'm sure that made it easier for us is that our lot is fully paid and we will have a considerable amount of our own money in the home.

As mentioned our bank required a proficiency statement from us. We had to write a summary explaining to the bank why we were qualified to act as our own contractor. I do have experience working with subcontractors, contractors, and have successfully completed many DIY projects.

We also have hired a contractor that we pay as a consultant by hours used and that also helped relieve some of the banks concerns. So far we have paid him about 20 hours.

Return to “New Build Housing and Green Housing”

Who is online

Users browsing this forum: No registered users and 1 guest