What is an Owner Builder Construction Loan?
As the owner-builder, you act as the general contractor (GC) of your home construction project. Historically, most GC’s charge up to 20% as a construction fee. When acting as the GC, you can eliminate this fee and control all decisions regarding the project. This includes your choice of contractors and the materials utilized in the construction of your home. In granting an owner builder construction loan, the most inviting opportunity for a potential lender is the fact that the Owner can typically complete the project with instant equity. The process is not without challenges and you should have superior people, organizational and management skills. How the Owner Builder Construction Loan Process Works The first step is obtaining the loan itself. There are numerous lenders that are willing to grant owner builder construction loans. In addition, lenders can also be a very valuable source of information regarding contractors, materials and various costs associated with the project. Prope
