The following lenders are O-B friendly. Some of them even accept less than stellar credit. I will add to this list as I find more sources.

M & T Mortgage: Offers loans for land and construction.

Normandy:

• Borrower acts as their own General Contractor (No site supervisor required)  
• Loans available to borrowers with excellent to less than perfect credit
• Flexible draw schedules
• Up to 90% of appraised value on single family, full income documented, conforming loan amounts. Otherwise, up to 85% LTV.
• Land purchase may be included in construction loan, up to 75% of the lot purchase price
• 12-month construction term (up to 18 months on an exception basis)
• Interest-only payments based on funds drawn  
• Loan amounts from $75,000 to $2,000,000
• Not credit score driven, but the score does affect the rate and LTV.
• Owned land can be used towards down payment.

Bismark:

• Maximum LTV 70%.
• Minimum credit score of 700.
• Loans up to $400K

Do you have links or contact information for those lenders?

MidCountry does 100% on land and construction.

List updated on 10-10-2005

The mortgage company I use says that there are certain lenders that require you to have a general contractor to build your home, other lenders do not. Contact Fireball and they will explain what options they have. Remember, in the state of Texas you cannot build your own home. So you will have to get a relative, friend, or the like to pose as your GC. This is only for the paperwork. Some lenders also make the draws to the posed GC, but that is a good question to clear up before deciding what lender you are going to go with. I currently am using Fireball Mortgage/Financial. I am going with a lender that does not require a GC and the draws with be made out to me. The interim financing will be 7 1/2% for one full year.

Hope I answered some questions, will post later if I think of any more helpful info.

Jessica

Jessica,

Where did you get the idea that in Texas you can't build your own home? I've been planning mine for several years and all the GCs and subs I've talked to have never said anything about Texas not allowing someone to build their own home. Are you referring to a state law or some city ordinance?

Regards,

Bret

Has anyone had experience with Owner-Builder Framing Systems?

I'm in Southern Illinois and they're based in Michigan and they seem to do it all, from 100% O-B financing to supplying a complete framing package factory-built to your specs and no GC required. It almost seems "too good," which is why I'm looking for some input from anyone that has dealt with them.

Thanks,

Danny

Sorry it has taken me so long to respond.

Fireball Financial, I believe that is the website.

In response to the question about O-B in Texas, yes you can O-B in Texas, but a lender will not lend to an O-B here. For instance: I got all the permits in my name, and all of the contracts are in my name, but I have to have a signed contract with a builder. (The builder can be anyone willing to go through the whole mortgage process, possibly fill out paperwork, and because you're filling out legal documents -- the builder could be legally responsible. This could be anyone.) The lender that I am using requires a builder, but does not require the builder to have a GC license. And there are lenders that do require the builder to have a GC license.

There is also the Owner-Builder Network for which you may have seen signs or advertisements. This company does most of the legwork for you -- for a pretty penny; typically $2.95/sq. ft., allowing you to pick the contractors yourself. But what I believe is, that if I am willing to pay $2.95/sq. ft. to a company to help me be my own O-B, why be my own O-B? In my area, it is the same as hiring a custom home builder, except the CHB is doing everything. If I want to save money, I will do ALL of it myself and not hire a company to do the paperwork.

More info later,

Jessica 

Does anyone know of any lenders that are licensed in Arkansas?  We'd like to start building a home in the spring but most places I've checked in central Arkansas don't do owner-builder loans.

Any suggestions would be highly welcome!

I noticed that some of lenders are wholesale-only (Bismark, for example). I work as a broker in Irvine, California and can, of course, help get loans from these companies. The company I like for construction loans (not O-B friendly) is Webster, but it works, since a lot of people (like myself) do find ways to use a friendly GC.

You're right; my mistake, I thought some of the others were wholesale only.

Tom,

Did they say you would need a GC or project manager as an O-B? Do you have any contact names from the show? 

Thanks,

Brenda

Am I getting this right? A relative could sign as the builder on paper if they go through the legal paperwork, but no GC license? What about liability insurance? Is the relative required to carry it? Sorry for all the questions but I have found lenders in TX to be a pain. Thanks for any help you can provide.

Cassie

Bismark Rate Sheet:

  Click here to download attachment...

Jack:

Judging from the settlement statement, this loan is closed and your closing costs were $9,593 -- is that correct?  If so, closing costs should be shown in detail on page two.

Two more lenders who may be able to help are Transland and Chevy Chase Bank, I am looking into them now and once I have the details of pros and cons, I will post them.  Has anyone else used these companies?

Lisa.

IndyMac has suspended construction lending as of February 2007.

I am in the process of trying to find a lender to finance our build. I have filled out CTP's request form, but haven't heard back, I actually filled it out a second time just to make sure I did it correctly. As far as MidCountry, I followed the link to their website, but I'm really not sure of where to go in the website for assistance on an owner-builder loan. Can someone point me in the right direction there? I am located near Houston, TX, if that helps.

Thank you!

Sheila

I like MidCountry. Try:

Give MidCountry a call and see what they can offer you.

You should try Construction Lending Corporation also.

Thank you for the reminder. I meant to remove them from the list and forgot.

Welcome to the board,

As far as I know. I check up on them on a regular basis. Some of their requirements change faster than I can keep up with. :)

Thanks,

Phil

I don't... we used MidCountry Bank... if you are being your own GC, they require a site supervisor who is a GC and written bids. However, they do work on the draw method. Not sure I like it either... we are waiting for our first draw... seems like it is taking forever... but all in all, I was happy with the process.

Be careful with this one.  It could be a legitimate small business or something else. A few clicks on the website lead to many questions.

By clicking on some of the pages you can find a phone number in the (832) area code and a fax number in the (775) area code.

Why are the telephone and fax number in different area codes? Is it some cell phone and a free internet fax service.

Also, when I clicked on the licensing information tab, I got a file not found message. Hmm...

Hi,

I don't have much more to add. I think I initially made contact with her around four years ago. She was great on the phone, quick to respond to emails and willing to answer my questions.

I mentioned her to a MidCountry rep years ago and the person I talked to spoke very highly of her. I got the impression that they worked with her quite a bit.

I need to try and dig up my notes on her, but I think she may have changed companies or something. I think at one point she was a registered loan officer in Texas and a licensed mortgage broker in Florida.

I am pretty sure that she owner-built a home here in Florida.

Updated 01-16-2010.