I would like to explore acting as my own contractor to build a home on several acres of land that I own outside of the DFW area (unincorporated county land). Looking for advice on how to secure construction lending that will convert to a conventional mortgage without going through an established general contractor.

Has anyone used the Built-by-owner or Owner Builder Network? What are the general costs to sign up for those types of services and what kind of experience did you have using them?

The reason we (banks) don't like to do these is that: if you go bust or disappear, we want someone who we can pay to finish the house. IF you are the GC, and you walk the deal, then we have to find someone else to step in and finish it. It takes time to find someone, so meanwhile the house is deteriorating.

I'm not saying there aren't banks out there who will do it. Just that people don't seem to understand why banks wont let them do whatever the hell they want.

I'm closing a construction loan next Tuesday with a Texags poster who started down that path and decided the financing options were too limited and costly.

It can be done but at a cost.

Agree with the above replies. The risk can be factored into the deal somewhere but at a price. Then you have to decide if it's worth it.

I'm scheduled to close with jja79 next week and I went down the "be your own GC" route before deciding to go with a builder. I work for a commercial GC and was the GC for my current home. I had a lender lined up that was willing to do the deal, but for me it was a cost benefit decision - I couldn't justify the MAJOR time commitment for the savings I was going to see. Yes I will be spending more with the builder - but I'm buying a Service. He will be there everyday watching the build and has relationships with subcontractors.

For your original question - I looked at the "Owner Built" services when I built my current house 7 years ago. At that time, they wanted $2.50 per covered SF.

What do you get for that cost? They help with the original budget and financing, you get a how to book and a subcontractor list.

Cheaper than a traditional builder - but you are still doing all the work. For me I only needed the financing which I was able to secure without them.