Build Your Home
Yes, you can build your own home! Acting as your own (GC) General Contractor when building a
new home can save you thousands of dollars and help you create instant equity upon completion.
Many people believe that you have to hire a General Contractor in order to build a house, but in
every state you, the owner, can act as your own GC, take out all permits in your own name and no
license is needed.This book is a must http://budurl.com/MyBook1
Why would someone want to build their own house without experience? Building your own house
doesn't require you to have construction experience. As your own GC, you are basically the
project manager, managing each aspect of your build, hiring and scheduling subcontractors, and
making sure everyone follows your plan. Building your own home doesn't mean that you'll need to
be out there in work clothes, a hammer, and power tools. This is not to say that you can't do any of
the work yourself. If you have experience in a trade like electrical, drywall, framing, or roofing,
you'll save even more money by doing that work yourself. But, without picking up a power tool you
should expect to save at least 15%-25%.
That's right 15%-25%. A lot of families save even more than this when building their own house,
some 35%, some even 50%. How can you save so much? Well, traditionally, a builder or GC will
markup the price of your home 15%-50%. Cutting out the middle man puts that money back into
So where do you start? Well, when building any home, someone has to pay for the land,
materials, and labor, so financing or having the cash on hand is the first thing you need to think
Owner Builder Construction to Permanent Financing
Lenders who will lend money to owner builders are becoming harder and harder to find as the
economy weakens and the mortgage industry guidelines become more strict, but they are still out
there. If you don't have enough cash in the bank or prefer to use 'other people's money' then you'll
need to get qualified for financing. Construction to Permanent loans for owner builders will provide
financing for the land, materials, and labor. There is one set of closing costs for the land,
construction loan, and permanent mortgage. There are loan programs available with financing for
up to 100% of all costs involved. If a down payment is required, land equity can be used in most
cases so no money needs to come out of your pocket.
Once you know that you're pre-qualified for financing or have budgeted money you'll be using from
a savings account to build your own house, you'll need to start coming up with a plan. You're going
to need to find a piece of property (if you don't own land yet), find a set of plans, and start putting a
As an owner builder consultant, I always advise families to find land first, and then look for plans.
Some people go about this backwards, spending hours online searching for perfect house plan,
then find their dream lot to place their home only to find out that major adjustments need to be
made to plans in order to make them work on that specific lot. If you've already purchased plans,
no need to worry, but it's always good practice to find plans that will work once you know where
the house will be going, the elevation of the land, views, sun exposure, etc.
So far, you've got the financing lined up, a land contract, and a set of plans. Now it's time to solicit
subcontractors who will do the work you want to sub out when you break ground on your new
house. It's always good to get bids from two to three different subcontractors when building your
own home so you can comparison shop and make sure you're getting a fair deal. Always use a
company you can trust. Research their licensing status, better business bureau for any
complaints, and call on references. Doing this work up front can help you avoid costly setbacks by
dealing with unscrupulous subcontractors. And, always remember, the cheapest is not always the
best choice. Don't be afraid to pay for quality work.
Now that you've made your choices, it's time to come up with a budget to build your house. Use
the bids you've received from your subcontractors to comprise a budget. Make sure you get a
comprehensive checklist of things that need to be done to build a home, and then account for
every job aspect. Your bottom line should reflect what you've been prequalified for or what you've
budgeted from your savings to build your house.
Everything's approved and you're ready to close and get started building your home. Prior to
closing, make sure you understand the requirements for making draw requests to get money from
your construction loan in order to pay your subcontractors.
Once you close and get started, make sure you stick to your plan. You should have at least thirty
minutes to an hour per day dedicated to managing building your house. We've seen single
mothers with full time jobs build their own home, but make sure you can dedicate time to make
sure your project is a success.
Building your own home can be a very rewarding in terms of savings and sense of
After everything is said and done, you now have a home that you built, where you wanted it, and
at wholesale cost to build. By cutting out a GC you can save thousands of dollars. What will you
save? $20,000, $50,000, $100,000, or more tips take a look at http://blueprintsaver.com for your
calculator and chalkbox.
Build Your Home