When you apply for your owner-builder-home-construction-loan, you'll need to take estimate bids from most all of your potential subs to take with you to the bank.
Until you get your estimate bids you won't be able to get a construction loan. You can't start building until you get funding. So get started right now by getting those
estimate bids (HERE's how)
from all your potential subs so you'll have them ready to take with you to the bank when you go apply for your construction-loan.
When you go to the bank, if you take at least 2 bids with you from 2 or more subs in the same catagory of work, (2 plumbers, 2 electricians, 2 framers, etc) you will show the banker you are serious and it will appear that you do know how to build a house, as you apply for a construction-loan. The loan officer is concerned that you have back-up bids in case one of your subs cannot do the job when you need it done.
Study this website thoroughly so you'll know your job as owner/Builder (GC) and then talk "shop" with the banker. Let him/her (banker) witness that you understand the building process.
Our Loan Officer admitted that even her best General Contractors didn't come with as much documentation as we brought with us, and we had 2 bids per contractor in many cases. We never came across as "knowing it all", and I often asked my Loan Officer for help whenever I needed to. She was always willing to give help and suggestions.
First impressions are what last, so along with your plans take as many of your sub's estimates with you as possible.
If your credit is good and you have a solid job, plus if you take estimate bids with you to the bank, along with your houseplans, you'll have a better chance of getting an owner-builder-home-construction-loan, as long as the bank is looking to make home construction loans.
NOTE: Since we built our home in 2006-7 and the housing bubble burst, building a new home may not be the wise thing to do. In the 1980's it was suggested that people remodel rather than build new. You too may find that remodeling or adding on to your current home is a better idea than building a new home. In that case you'll need money too, so the above ideas are still applicable. Just remember to re-side the entire home with brick or vinyl siding etc, and make upgrades to your electrical, plumbing and appliance needs when getting your loan.
Searching for your owner-builder-home-construction-loan is never easy, but consider it "shopping for money." It simply means you will have to search until you find a lending institution that is "hungry" for loans.
- sign a contract with your subs
HOW TO GET a 100% construction loan
Cost estimates for your home construction loan
Make a list of your sub contractors
How to get owner/builder financing
Building your new home as owner/builder
A step by step guide to building your home
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