By Craig in Chapel Hill, NC on 5/22/2004
I haven't used Owner Builder Finance, but I did speak to someone from there. One thing that wasn't apparent to me (at least by reading their website) is that they are more than just a lender, they are construction consultants (through buildmax network).
The positives I saw with their program were they have a one time closing cost and up to 12 month construction period where you lock your interest rate on the date your construction loan closes (ie if you close in June and rates are 6%, you have 6% rate even if they increase during construction).
They also offer an opportunity to change to a lower rate in the event that the mortgage rates decrease. Also, they set aside an "interest escrow" so you make no payments during construction and they allow 2 draws per month (you can do extra draws per month for a small fee (approx $100 per extra draw). All of your loan details are handled through their website, and if you request a draw, the money should be in your account within 2-3 days (They send an inspector out to ensure you have completed what you are requesting the money for).
The costs related to this loan are about $3000 in closing costs (out of pocket), and then they add another 2.75% of the loan amount (they charge $6500 or 2.75% of the loan, whichever is more, but this is paid through the loan, not out of pocket).
The gentleman I spoke to was a member of buildmax, so since he wasn't licensed in my state he would pass the project off to the local buildmax rep who would be my construction consultant to assist in the project. I'm not sure how this compares with any other options you have, but hope this information helps. You can always give them a call to ask any more questions you might have.