What is a home build loan?

It’s also called a DIY home build loan or an owner builder construction loan. To qualify for any kind of construction loan, you usually need a qualified builder — meaning a licensed contractor with demonstrable experience building homes — to sign on to lead the project.

What are owner-builder construction loans?

Owner-builder construction loans are a type of construction loan. You will need to apply for an owner-builder mortgage with similar documentation to a traditional mortgage, including government ID, proof of income, savings, and downpayment. Lenders will also look at total debt, debt-to-income ratio, and credit score when assessing loan amount.

Are owner-builder loans a good investment?

The same amount of equity can take years to build up normally, making the loan an investment with quick returns. Owner-builder loans can save anywhere up to 40 percent of your construction costs, depending upon whether you do everything yourself, hire help, or enlist project management.