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Georgia Owner Builder Loan/ Finance

9 years ago

Hey, guys i found this site while looking for some tips on getting a loan for OB. This is a great web site, but i did not find exactly what i am looking for. So i want to ask if any one has any luck getting Owner Builder finance loan. Seems like every bank i called around me needs a GC which i am trying to avoid. If some one has any tips or went thru this before please let me know. My property is paid off, credit is good, have down money.

Thanks

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Comments (6)

A Lleux
9 years ago
We just started the process with a local credit union. I'm in Louisiana though, and it is very common in my area for people to act as OB. We haven't had to provide anything special. They did want us to have a bid for turnkey construction from a GC to turn in along with all of the individual bids we obtained ourselves for each part of the project. Have you checked with local banks/credit unions and not just big banks?
IgorekAX
Original Author
9 years ago
I called most of the smaller local banks as also big banks, and all of them require a GC or at least GC to act as a consultant that is registered GC in state of GA as i have relatives that are GC but in different states. I have not tried Credit Union yet, i guess that would be my last option before my own finances.
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We ARE building ourselves at a significant savings. We did the wiring ourselves with an electrician only to put the panels together. We could've done that, but the $720 we spent on labor to have him look over everything and set up the panels so nicely was worth it. Just for electrical, based on his estimate of what labor would have been for the whole job, we saved over $12K. Savings for doing the framing ourselves: $25K I've saved hundreds into thousands of dollars doing the finishing on our interior doors myself. I could go on, but there certainly are possible major savings, if you have the knowledge and skills. Of course, some people define 'owner-builder' as someone who GCs, but doesn't do any of the work. I can't speak to the savings, or lack of them, in that case. As far as banks, we ended up finding 2 (both small and local) that would lend to us as owner-builders. One had the most nit-picky cost breakdown listing of any...Thank goodness! It made us make decisions and really research prices and bids. The lack of financial surprises along the way has been a tremendous blessing. The one bank did have a dollar/sq ft minimum and required a line item for contingency for labor if dh got hurt or sick and was unable to finish. The 2nd bank (the one we used) didn't require it, but we put it in for our own safety, although not as much as the first bank wanted. Best wishes on your project.
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@Cpartist - Yes, a watertight habitable shell, with plumbing and electrical hook ups. I will be installing the fixtures, ie: showers, toilets, tubs, lights, etc. myself. I know how to do a lot of the interior work so I don't want to take out more money than I need and go into debt paying someone to do work I know how to do. @ B Carey - I think what I am asking for is technically called a "Shell only loan," but I am finding that term is being interpreted differently by different people. So what I am looking for is the funding to complete phases of the project, even if I want to hire subcontractors to help with some of the work. I guess I want to go into as little debt as possible. I'd be willing to do a true "owner builder" loan that is financed by the bank by taking out a larger loan and just using the contractors for the really serious portions (Foundation, electric, framing, etc), and then using the rest of the money to finance the work I want to do on my own. That would probably actually be best. I am in my 20s, I don't have a 401k. I just sold the home I did have for $525k. I have gotten approved for a personal loan already, however, (1) The bank caps their personal loans at $35k, and (2) I would prefer to take out a loan that turns into a 15 year mortgage because the interest rates are a lot lower than they are on unsecured personal loans. I purchased the land for $50k but I do not know how the bank would value the land. Can you explain the thought process behind taking out a land loan on land I already own? Thanks for the response
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kris_21
9 years ago
Repost in case you missed it

Ignore - just keep checking / asking around. We finally found a bank that was fine without us having a GC. (Granted, my SO has construction experience and we came in with finalized plans and a completed budget) (It's not a credit union, but a smaller local bank, not a chain)
let_er_dig
9 years ago
kris_21 would you be able to share the bank or lending institution you went with for owner builder financing in GA?
I'm not sure how to send a private message on here...
Thanks
Todd Burke
2 years ago
We are looking at also being an owner/builder here in GA. I would also like any information as to what banks or credit unions would be willing to take on the project. Thanks
Vince Smith
last year
@Todd Burke Did you have any luck finding a bank for your OB build in GA? I am also looking and not having much luck. I'm considering creating a resource site to get a list going since this seems to be coming up quite often.

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