Can you build your own home yourself with a DIY construction loan from GreenStone? The simple answer is yes! There are many different options when it comes to making your dream build a reality. Dive into the possibilities a DIY construction loan with GreenStone gives you when it comes to the building process.
With the housing market remaining competitive due to ongoing low inventory, more and more people are opting to build rather than buy. But what does a DIY loan mean exactly, and do you have to handle all the contracting and labor yourself? The answer is no! When it comes to a DIY loan with GreenStone, you can build your own home and decide how hands-on you want to be with the project. Whether you want to act as your own general contractor, subcontract everything out, or something in between, GreenStone’s team will work with you to customize your project to fit your needs.
Working with a Builder
There are many benefits of working with a builder on your home construction project. The first being your builder will act as your general contractor, meaning they will coordinate the delivery of materials needed, work with vendors, and schedule the timeline of the build. If you are someone with a busy schedule who won’t be able to put the necessary time into your home build project to have it completed by the deadline, then working with a builder on your home is the ideal choice for you.
Another benefit to working with a builder is the peace of mind that comes with having a professional source vendors and utilize their resources. Builders have a broad network of subcontractors at their fingertips, and that can be very useful should you need to find a new vendor unexpectedly!
One downside of working with a builder is having less control over the project. If you prefer to be very hands-on throughout the build process, working with a builder for the entire project may not be the best choice for you.
Acting as Your Own General Contractor
If you're prepared to handle the challenges that could arise during the building process and are willing to take on the work yourself, you might want to consider acting as your own general contractor. If you have expertise in areas like construction plumbing, electrical work, or other skilled trades you can complete those tasks yourself in your new build while also contracting out other work to subcontractors. Whatever work you want to handle for your new build, it’s your call.
Most commonly, those who opt for a DIY build will handle a portion of the labor and then choose to contract out jobs they are less experienced in, such as the site preparation, septic work, or pouring the foundation, and focus on their skills such as finishing the interior of the house themselves.
As a general contractor, you need to consider whether you have the time and resources to manage all the subcontractors, handle payments, and oversee the construction loan. When you're the general contractor, you're solely responsible—no one else will step in to help.
You’ll be in charge of resolving any unexpected issues, such as when a subcontractor cancels or can’t make it to the site on time. If that happens, you may have to find and hire a new subcontractor quickly, which can take a lot of time and effort to coordinate. Do you want to do all, some, or none of the labor? It’s best to determine beforehand what you are willing to take on before you start the project.
Setting Yourself Up for Success
When it comes to a successful DIY home build, one of the most important things you can do to ensure a smooth project is give your lender as much information as possible as soon as you can. The more detail you can provide on your project and the more definitive decisions you can make upfront, the easier the process will be. Going into the project knowing the amount of bedrooms you plan to build, the square footage, and other details that affect the scope of the project will help your lender more accurately assess what your needs are.
GreenStone’s dedicated team of home construction experts are here to answer any questions you might have on a DIY construction loan! Contact your local branch today to get started on turning your dream floor plans into a reality!
