Loan Features

Construction Loans For:

  • Do-it-yourself home builders who want to act as their own general contractor
  • Primary residences, rental properties, or investment properties
  • Individuals using their own labor
  • Conventionally framed homes
  • Log homes
  • Timber framed homes

Loan Duration:

  • 9-month construction loan with 3-month extensions as long as your account stays current
  • NO Pre-payment Penalty

Interest Rates and Fees:

  • Your interest rate will be equal to the Wall Street Journal’s Prime Rate plus a fixed margin rate which is determined by your middle FICO credit score.
  • Our loans are considered Adjustable Rate Mortgages which means that your interest rate can change throughout the life of the loan depending on if there is a change in the Wall Street Journal’s Prime Rate. (If the Prime Rate goes down, your interest rate goes down by an equal amount. If the Prime Rate goes up, your interest rate goes up by an equal amount.) The margin rate remains constant throughout the loan.
  • You are assessed interest ONLY on the amount of money which has been drawn from the loan, not the entire loan amount
  • The following closing costs are paid FROM the construction loan at close:
    • Origination Fee of 1 point paid to the Mortgage Broker (1% of loan amount)
    • Processing Fee of 3 points (3% of loan amount)
    • $600.00 Loan Underwriting Fee
    • $100.00 Document Prep Fee
    • Closing agent’s fees for but not limited to title insurance, closing, and recording fees

FICO Credit Score Requirements:

  • All borrowers must have a middle FICO credit score of at least 700 to qualify
  • Flexible programs for  veterans are available with lower FICO credit score requirements

Maximum Loan-to-Value and Loan-to-Cost Ratios:

  • The maximum loan amount can be no greater than 75% of the project’s appraised value OR the sum total of land costs plus construction costs, whichever is less

Cash Reserves Requirements:

  • Borrowers must have cash reserves on hand at the time of closing which are equal to 3 months of interest payments on the full amount of the construction loan

Loan Amounts:

  • The minimum loan amount is $10,000.00
  • The maximum loan amount is $350,000.00

If you currently do not qualify, please check back soon as our requirements change based on market conditions or call (800) 543-5600.

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Success Stories & Testimonials

Cindy and Carl from Austin, TX

Owner Builder Loans, LLC made it possible for us to build our dream home. When other banks wouldn't lend to us, they did. They were always courteous and anxious to work with us. We couldn't have asked for a smoother application process and making draws from the loan was even easier! We would absolutely recommend Owner Builder Loans, LLC for anybody building their own home.

Mark from Tuscaloosa, AL

After having tremendous difficulty finding a lender who was willing to let me act as my own General Contractor, I came across Owner Builder Loans, LLC. They had a program that was designed specifically for somebody in my situation. Their staff was friendly and very attentive to my needs. I never felt like just some account number. It was refreshing to talk to the same people every day and not get shuffled from department to department like many big banks would have required. Excellent company!!! I hope to work with them again!

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