Construction Loans CA

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Owner Builder Loans

No Contractors License Needed!

If you are an organized, take-charge person who wants to acquire 10% - 25% equity at the completion of construction, then you should consider an Owner Builder loan. The Owner Builder program allows a homeowner to take control of construction and avoid the high cost of hiring a general contractor. As an Owner Builder, you will be in charge of all aspects of the construction including designing the home, budget preparation, selection and purchase of materials, obtaining and accepting subcontractor bids and site management.

Benefits of Being an Owner Builder

• 10-30% equity at completion of construction
• keeping the project on-schedule
• controlling the budget
• ensuring the use of quality materials
• ensuring quality workmanship
• eliminating the middleman
• personal satisfaction from building your home

Loan Programs for Owner Builders

Many banks do not offer construction loans and those that do usually require the borrower to be a licensed contractor. Our lenders are different because they offer construction loans to homeowners who have a contractors license as well as those that do not have a license. They recognize that there are people who do not have contractors licenses who are able of successfully manage their own construction. Based upon a favorable lending history, our lenders offer some excellent Owner Builder loans. Highlights of these

Owner-Builder loans include:

• up to 95% financing for labor, materials and closing costs
• no out-of-pocket payments during construction
• no contractor's license required
• no construction experience required
• one closing
• no money down programs
• no application fee

Owner builder loans are available with a "one-time close" that wraps the purchase loan, construction loan and permanent mortgage into a single closing. These loans are also known as "construction to permanent" loans. The biggest advantage to a "one-time close" loan is that it saves you closing costs and at the end of construction, it guarantees you a permanent mortgage without having to requalify. By combining up to 3 loans in 1, you save money on escrow fees, title fees, recording fees and appraisals. You also ensure that you will qualify for the permanent mortgage without having to submit income and asset documentation and without having to worry about whether the completed project will appraise at the amount necessary to qualify for a mortgage.

For homeowners who do not have a contractor's license, you will be required to hire a Site Supervisor to assist you with managing the construction. The Site Supervisor acts as a consultant to ensure that your construction meets the plans and specifications and complies with building codes, health and safety standards and other requirements. Retired contractors are often hired as site supervisors. While general contractors charge a fee of 10% - 25% of the cost of construction, site supervisors charge either a flat fee or hourly fee that is significantly less. A Site Supervisor must either be a licensed contractor with 5 years experience or have 2 years experience in construction management

Builder Loan Programs | Owner Builder Loans CA