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Your Guide to Owner Builder Financing

Understanding the In’s and Out’s of Owner Builder Construction Financing

Securing an owner builder construction loan is a vital first step in beginning the journey of building your own custom home. These loans provide funding directly to the homeowner who acts as the general contractor during construction, overseeing each aspect of the project from planning to completion. Understanding the details of owner builder financing is crucial throughout the pre-construction and building processes, as it empowers you to navigate the complexities of owner builder financing and budgeting effectively.


Whether you're contemplating building your first custom build with the help of Built Green Custom Homes (BGCH) or are seeking to deepen your understanding of owner builder financing options, our goal is to guide and equip you with the knowledge needed to navigate this exciting endeavor with confidence.

What are Owner Builder Construction Loans?

Owner builder construction financing is a niche market. Owner builder construction loans cater to those interested in building their own homes. These unique loans offer direct financing to homeowners for increased control and customization. Unlike traditional construction loans, they allow homeowners to be in control of their budgets and construction costs.

How Owner Builder Construction Loans Work

Owner builder construction loans provide financing directly to homeowners who act as their own general contractors during home construction. This arrangement allows individuals to manage the project themselves. Funds are typically disbursed in phases as construction progresses, based on completion percentage, pre-approved milestones, and/or inspections. This ensures compliance with the loan terms and helps protect the lenders interest.

This approach grants homeowners more control over the building process, enabling them to be in control of their budgets and costs.

Potential Eligibility Qualifications and Requirements

Eligibility for owner builder construction loans typically require the following:

  • Proof of an understanding of the construction process or working with an owner builder program such as Built Green Custom Homes.
  • Detailed construction plans, budget, and specifications.
  • 10 – 20% equity in the project. Generally in the form of land, cash to close, or already completed tasks.
  • Good credit history and debt-to-income ratio, including proof of income as well as assets.
  • Contingency or sufficient cash reserves to cover unexpected costs or delays.

Benefits Compared to Traditional Construction Loans

Some benefits of owner builder construction loans compared to traditional construction loans include:

  • Cost Savings: Potential reduction in costs by eliminating contractor markups and fees.
  • Customization: Greater flexibility to personalize and customize the home according to your personal preferences.
  • Control: Enhanced control over the construction process, including choice of subcontractors along with materials.
  • Budgeting: Increased control over construction costs.
  • Investment Potential: Potential for instant equity due to savings realized by building your own home.

8 Steps to Obtain an Owner Builder Construction Loan With BGCH

1. Find Your Ideal Property: Utilize our expertise at BGCH to locate the perfect building site, and we can recommend lenders offering land loans in Texas if needed.

2. Select a Construction Lender: Benefit from our relationships with lenders that offer owner builder financing to BGCH owner builders.

3. Obtain Pre-Approval: Secure pre-approval to establish your budget, ensuring your home design aligns with your financial comfort.

4. Develop Custom Home Plans: Collaborate with BGCH to create detailed plans, specifications, and a detailed final budget essential for securing your owner builder construction loan.

5. Secure Your Loan: Close on your construction loan within approximately 60 days after your lender receives all necessary documentation.

6. Build with Confidence: Experience the streamlined processes for draw requests, inspections, and funding to maintain project momentum and timely payments to vendors and contractors.

7. Find Your Permanent Mortgage: As completion nears, explore competitive options for a long-term mortgage for your new custom home.

8. Close and Move-In: Celebrate the completion of your custom home, built with potential equity gains, and enjoy your accomplishment.

Finding the Right Lender

There are few lenders who offer owner builder construction financing in Texas. Our team at Built Green Custom Homes maintains relationships with lenders that offer owner builder construction loans to BGCH owner builders. When researching lenders, consider factors such as their experience with owner builder construction financing, interest rates, loan terms, and customer feedback from fellow owner builders through reviews and testimonials.

Tips for Success

Here are tips for success in owner builder construction projects:

  • Budgeting Strategies: Get pre-approved early. Have a budget in mind prior to designing your custom home. Consult with someone familiar with residential construction costs in your area to make sure you are designing something that fits your budget.
  • Communication and Collaboration with Contractors: Establish clear expectations and maintain open communication with vendors and contractors. Schedule regular meetings and updates to ensure everyone is aligned, minimizing misunderstandings and delays.
  • Maintaining Quality and Standards: Regularly inspect workmanship and materials to ensure they meet quality standards. Prioritize inspections and compliance with local building codes to safeguard the construction site and project integrity.

Choose Built Green Custom Homes to Help You Navigate the Owner Builder Process

Give us a call today to take your next step in building your custom dream home. Our team at Built Green Custom Homes specializes in helping Texas owner builders build their own homes at the best possible price.

With BGCH, we offer support throughout every step of your owner builder journey. We can assist you with owner builder financing, custom home design, pre-construction tasks, and guide you through the process of building your own home.

With Built Green Custom Homes, you will capitalize on cost savings through owner builder incentives, gaining equity while experiencing transparency with clear expectations and open communication throughout the entire process. Reach out to us at BGCH today to secure equity and build your dream home.

Questions? Comments? Contact Us for more information

Associations & Certifications

We are proudly affiliated and/or certified with the following industry associations:


Greater Houston Builders Association

Texas Association of Builders

Graduate Master Builder

Certified Green Professional

BBB A+ Rating