There are several different ways to prepare to build a house financially. Farmer and I feel strongly about saving up the money first and building with cash because we hate interest with a burning passion. Had we taken out a loan to build our house, even a short 15 year loan, it would have nearly doubled the overall cost of our home after interest. Doubled!!!
So we decided to do everything in our power to pinch pennies and live frugally for 7 years while we saved, and then build our home slowly, with cash.
Owner building for us, not only saved us $200,000 in building costs, but it also allowed us to build without a loan, which saved us another few hundred thousand dollars which we would have accrued in interest.
That being said …. I KNOW that is not the best option for everyone. You are the only one who can decide what works best for your situation and your family. For many people, taking out a loan is the smartest option. Sometimes it’s the ONLY option.
Which is why I am writing this post, and why we at Farmhouse From Scratch wanted to put together a giant list of institutions who will give loans out to OWNER BUILDERS WITHOUT A GENERAL CONTRACTOR.
Securing a loan as an owner builder can be one of the hardest parts of this whole process. Finding an institution who will loan to you can be incredibly difficult, and that’s just the beginning!
So we got to work putting together a list of places who won’t shut you down as soon as the words “owner builder” leave your mouth. Now this doesn’t mean you are guaranteed a loan guys. In fact, many of these institutions said that they could care less about whether or not you hire a general contractor. What they really want to see is how well you have planned and prepared.
Which, by the way, is one of the main purposes for my Plan Your House (PYH) course. If you have made it through PYH, then you are all set to meet with one of these financial institutions and show them just how freaking prepared you are!
If you are planning to owner build, and you haven’t tried out PYH yet, CLICK HERE to learn more about it and how it will walk you straight through the entire planning process and into the permit process in just 3 weeks.
Back to this giant list … My team has put together a huge list of lending institutions who are happy to loan to owner builders without a general contractor. There is at least one possibility from every single state across America. There are even places who will happily loan to owner builders in other states, so be sure to read the little notes about each place.
We have included their website and/or phone number for you convenience. There are also little tips or tidbits of info about specific ones.
We even included a list at the bottom, of other great institutions to try out if you do decide to hire a general contractor. After all, sometimes that turns out to be the best route to take.
If you have had a tough time finding financing, or are terrified about even starting down that road, this will give you a huge jump start into the possibilities.
Don’t start this journey off on the wrong foot by getting discouraged about financing. The most enjoyable parts of owner building are up ahead. Stroll easily through the financing part, and move into the exciting part of actually building!
For the FREE Owner Builder Lending List, please enter your email below and you will receive the list momentarily:
Now go secure yourself some financing!
~Farmer’s Wife
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Jen says
This is amazing!!! So helpful! We are building in Indiana and will definitely check out the bank you listed.
Thank you!