GuidesConstruction
Owner-built homes: what changes
Required experience, guarantees, advances and documents.
Your construction experience
Contractors hired for specialized work
A detailed budget, line by line
What lenders check on top
- Your construction experience
- Contractors hired for specialized work
- A detailed budget, line by line
- The home construction warranty, where it applies
Differences in terms
The required down payment is higher. Advances follow a tighter schedule.
What the lender fears
A site run without a general contractor can stall. The lender is left with an unfinished building.
Your experience and a detailed budget answer that fear.
Work to leave to professionals
- Electrical work, by a licensed electrician
- Plumbing, by a licensed plumber
- Structure, following an engineer’s plans
- Gas and heating, by a licensed contractor
The construction warranty
It does not always cover owner-built homes. Check before starting, not after.
The time it takes
An owner-built project often takes twice the time planned.
Each extra month costs interest on the construction loan.
Arrange a long enough term at signing.
What to document
Keep every invoice, permit and signed contract.
The lender will ask for them before each advance.
Rigorous filing keeps you from stalling your own site.
