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Comment by sjg007 | Hacker News Reader

You can get a construction loan in some States and in those States you are allowed to build your own house. Now the bank may have some requirements (show them your plans etc...) on you but you can generally act as your own general contractor. Still I think a reputable builder + home inspector + real estate attorney is the better way to go. At least if the contractor is registered with the State you can usually get access to State funds if the GC screws up.

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If some places you can structure it such that the bank will give you x amount once y work is complete. Eg they give you 20k, and once foundations are signed off by the council (or whoever) the next install will be handed to you for framing or subfloor. On completion of that another amount can be borrowed. It’s a good way to go.

I have not seen a lender that will give an "owner-builder" a construction loan without being a licensed general contractor. There are various common ways to structure a deal with a general contractor - fixed price, "cost-plus", or construction manager (where you convince them to "use" their license and they check your work).

Several of my family members have gotten such a lot, so as of 15 years ago it was still possible.

Building your own house is a good way to get end up in divorce. It hasn't happened in my family but they tell me that the stress is too high. You have to get that house built quick because the loan terms only give you a few months before you have to refinance.

Or a remodel is a quick way to divorce as well.

Some of my fondest childhood memories are from periods of major DIY home rennovation projects. Remodeling the kitchen, replacing the windows, installing tile and hardwood floors, all sorts of fun and hugely educational experiences.

These were times of pleasure, excitement, and productive collaboration for the entire family.

When I see comments like these it makes me wonder what sort of dysfunctoinal marriages people have got themselves into, and if taking on any sort of project requiring teamwork is simply forcing a realization of an already failed state.

But was it a fun memory for your parents? I remember renovations being exciting too but the reality of looking after children with an unsafe house, no proper kitchen or bathroom etc, gets old really fast.

Good question, and I can't speak on their behalf.

All I can say is it didn't drive them to divorce, and they're still together to this day.

I like to believe living in a home surrounded by the fruits of those past projects has played a positive part in their staying together, especially long after the kids left the nest. But that's nothing more than romantic speculation on my part.

True. The barrier here is then convincing the bank to give you the construction loan. The big construction companies (in some states in the US) move through homes so quickly and have found ways to reduce the amount of material used in certain parts of the build. They don’t necessarily provide a better home than you could build yourself. If you have recourse against them due to poor workmanship then that sounds like a good option. Most people don’t have the desire and/or network to become their own general contractor (it’s definitely not impossible though). What would you be using the real-estate attorney for?

Enforcement of the building contract and also what to put in the contract. You will find that despite the written agreement, the builder or sub will usually cut some corners.

Owner-built homes rarely use banks. My experience has been the way to go is a mortgage broker who can get you private money. It's more expensive than banks, but it works.

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