hi there, also not an owner-builder, but we did buy our lot almost a year before we were ready to start building, and it was difficult to find a bank to finance land-only loans. one that was willing is Washington Federal out of Denton, though maybe they have a branch in your area. Denton Branch 3100 Wind River Lane Denton, TX 76210 Office: 940-565-1807 Another was American National Bank of Texas. we were told the smaller banks are able and willing to be more flexible and creative. i suppose it's good to have options, but i agree that closing costs are super high in TX so i'm not sure you'll do much better. if you'd like a specific contact at either place just email me as i don't want to post their names here. :)

I'm a project manager now 75%+ through a build. Client's lot. For various reasons--overspending, poor choice of lender, delay in expected income--cheques have been bouncing and trades unpaid. Consequently, next week I am to become the second mortgageee and will advance what is needed to complete the project--$125K+. My main business is equity lending, so I'm quite secure. I trust this builder more than most! He will be responsible for all payments, with accounting to the owner. But still I find this awkward and would have preferred to keep the roles separate. Is this an uncommon situation?

Our bank said they didn't any longer and it was 'unheard of' now so we had to find a builder that would frame and then let us GC everything else, passing it through him/his license (for signature only - we did all of the leg work). Not easy to do, but thankfully a family member helped us out that has a builders license but typically sticks to finish carpentry. He did frame our home as well. Mid-build they said oh we don't do very many - VERY MANY? That is much different than NONE. I said wait I thought you said you didn't and she said well you have to have significant equity and trailed off as she looked at me knowing that we had exactly that. Grrr! Lots of run around that didn't need to happen. Good luck!

The OP risks his funds paid for the lot (and the lot too) if he deeds the lot to the builder and the builder is unable to finish The OP says, "One builder, who does a lot of spec houses, it looks like, said that his company would buy the lot, not us, and we would have the usual construction contract for a house that his company would build." Even if that were not the case it wouldn't necessarily be a problem. While not a common arrangement it isn't uncommon either, you just use an addendum to modify the quitclaim during breach or at the termination of the contract. Commonly the builder will accept a contingent quitclaim such that the deed only transfers if the buyer refuses to make final payment. It really isn't that unusual and I can't see any situation that an attorney would let you get into the situation you are suggesting. -------------- ETA: I did an addendum for a quitclaim on some property. I have a farm in an area that requires 10 acres to build (they are attempting to keep the area horse farms). We wanted to give the foreman an acre to build a house close to the farm. So we sold him one acre and quitclaim nine more, attaching an addendum that the quitclaim would reverse in two years unless he paid us a fortune.