Owner Builder Financing

Hello Permies!

I was wondering for those of you who did owner build on your home how you financed it.
We aren't really in a position to cash flow the home ourselves and would like to take on some kind of loan for our home.

The banks aren't happy with us wanting to be our own acting GC for a mortgage... understandably, and when we tried working a deal with a GC we know it didn't really go anywhere.

Now we're thinking of taking out a land equity loan as our land is owned outright and the value high enough for a land equity loan to actually be helpful.

I just wanted to hear what you did to get some ideas.

We're doing our best to keep the home modest so our funds needed aren't outrageous, about 750 sqft, in addition to doing much of the work ourselves.

We had enough cash to buy our land free and clear.  I came with a shell of a dwelling that needed the interior finishing.

So we financed the land and paid cash to finish the dwelling and any other project we wanted.

My plan is to start paying down the loan with extra payment going towards the principal, though I put that on hold to pay cash for a new to me vehicle.

I started off with a small personal loan which I paid off over 4 years but it gave me the immediate lump sum to get the structure up enough to give shelter.
I them used on going cash flow to complete the house and now, 38 yeras later I am still fiddling with the house!!!

In MN, I started out with a  basic 12 x 32 structure.   I paid cash for the materials.  As I had more cash I added on  12x 16 upstairs..... another 12 x 16 down stairs.....a 16 X 16 basement with a 16x16 addition on top of it. That ended up with 1000 sq ft above ground.  

John F Dean wrote:In MN, I started out with a  basic 12 x 32 structure.   I paid cash for the materials.  As I had more cash I added on  12x 16 upstairs..... another 12 x 16 down stairs.....a 16 X 16 basement with a 16x16 addition on top of it. That ended up with 1000 sq ft above ground.  

I'm very intrigued... you added a basement after the fact?

Was the upstairs put into the attic or did you physically raise the roof of the structure?
I mentioned we're shooting for about 750 sqft but my husband would like to put attic trusses in so we can finish out the attic space later. My only beef with that is having to pay for it upfront... but maybe it's not big deal. I just need to get some numbers down :)

Hi,  You could possibly take a course in the community college that allows you to get a general contractor license. (The information from the classes will also pay for themselves in added knowledge for DIY things you will want to do. Having the knowledge on what to do and having the codes will be very helpful.)

Then start a corporation by filling out a govt. form and pay the $125.00 for the L.L.C, and go into business if for only yourself as the one and only customer. Then the banks will not be thrilled, but will work with you.

Go with God

Arthur, why would the banks be unhappy about you forming a corporation?

Rebecca, adding trusses now will save a lot of time and money later.
Also, find out why the banks dont want to finance and see if you can address their concerns.
I am confident there will be finance available somewhere.
Do you have Building Society's which are different