The Definitive Owner Builder Construction Loan Guide


Hello, and welcome to our blog! Here at Owner Builder Loans, LLC, we understand that building a dream home is never a simple task. Building one’s own home is a great way to make sure that a house has all of the features and amenities that a person wants for their personal living space. Often, landowners will pay a hefty chunk of change to have a general contractor handle the building process for them, however, there is an alternative to this process which gives a homeowner more control over the entire process at a lower cost. This alternative, known as an owner builder loan, is going to be the subject of today’s blog post.  Continue reading below to learn more.


What is an Owner Builder and What Do They Do?


To understand this type of loan, first you must understand what an owner builder is. An owner builder is someone who owns their own piece of land and wants to build a home on that land while acting as their own general contractor throughout the process. Doing this requires the owner to handle several different tasks and, in some cases, is difficult for people to handle if they lack experience overseeing large-scale projects. To be a successful owner-builder, a person must be able to create their own construction budget, oversee the construction process, and hire any and all subcontractors that may be necessary to complete the construction project. While being an owner builder does not necessarily mean that a person performs any of the construction themselves, it does mean that they take on a lot of responsibility in relation to the oversight of the construction job. In addition to these responsibilities, a successful owner builder should display these three qualities:



  • Budgeting Skills: The most important thing that an owner builder must be able to do is come up with an effective budget and stick to it. Anyone who been involved with construction can tell you that staying on budget is pivotal to the success of any project. Without a solid budget plan, the owner builder will be unable to provide the materials and payments necessary to complete the job on time. If you are inexperienced with making a budget of this type, we suggest that you enlist the help of someone who is.
  • Construction Experience: When it comes to obtaining an owner builder construction loan, most lenders will not grant funds to a person if they cannot prove that they have some form of experience in construction. This experience is valuable because it provides the owner builder with the skill they need to oversee contractors, effectively schedule the work, and handle any issues that may arise during the construction process. If you do not have any construction experience, most lenders will grant a loan if you hire an experienced on-site project manager.
  • Leadership Skills: The final skill that an owner builder needs to have is the ability to lead. During the construction process, the owner builder will be coordinating a large workforce to complete the complicated task of building a home. As the owner builder, a person may have to settle disputes between different subcontractors, relay information between workers, and make any and all decisions relating to the project. While an owner builder does not have to rule the project with an iron fist, they do need to be able to lead and motivate their workers.



Join us again next time as we continue to go over some general information relating to owner builder construction loans. Additionally, if you would like to learn more about investment opportunities as they relate to our loan process, please visit our website today or get in touch with us by phone. At Owner Builder Loans, LLC we have been providing loans to owner builders for decades and we have distilled our loan process into the most efficient form that we could. Our loans provide investors with a great opportunity to make money from our loan program and we would love to talk to you about our loans if you are interested. With a high yield and low risk associated with our loans, you stand to make a substantial return on your initial investment.