Loan Features

The Easiest and Most Flexible Construction Loan Available!

You want to build your home, your way, and we want to help you do it! We empower you to design your own home, hire the subcontractors you want, and purchase the materials you want. Building a home is a big project! Don’t choose a lender that will add to the headache. Choose Owner Builder Loans!

Construction Loans For:

  • Do-it-yourself home builders who want to act as their own general contractor
  • Primary residences or rental properties
  • Individuals using their own labor
  • Conventionally framed homes
  • Log homes
  • Timber framed homes
  • Kit Homes

Available Loan Amounts:

  • The minimum loan amount is $10,000.00
  • The maximum loan amount is $400,000.00

Loan Duration:

  • 12-month construction loan with 3-month extensions available for those who qualify
  • NO Pre-payment Penalty!

Draw Process:

  • We offer UNLIMITED draws with absolutely ZERO draw fees!
  • Draws are disbursed in advance of construction and once progress has been inspected, you can make another draw.
  • Draws can also reimburse you for funds you have already spent as long you meet the invested equity requirement.

Interest Rates and Fees:

  • You are assessed interest ONLY on the amount of money which has been drawn from the loan, not the entire loan amount
  • Our loans carry a variable interest rate which is tied to the Wall Street Journal's Prime Rate. The interest rate you are charged is the sum of the Wall Street Journal's Prime Rate plus a fixed margin rate which is based on your middle FICO credit score. Should the Prime Rate change, your rate will also change at the same time and in the same amount.
  • Most borrowers do not have any out of pocket expenses at close.

FICO Credit Score Requirements:

  • All borrowers must have a middle FICO credit score of at least 700 to qualify.
  • Lower credit scores may be accepted for those who have greater than 20% equity in their project or for those who are eligible for VA financing.
  • Owner Builder Loans, LLC will run a tri-bureau credit report on all applicants and use the middle score for qualification purposes and interest rate assessment.

Equity/Down Payment Requirements:

  • All borrowers must maintain a level of equity in their project equal to 20% of the total project cost. Total Project Cost is equal to site value plus the total estimated construction costs.
  • Borrowers may count the equity in their land toward satisfying the 20% requirement.

Maximum Loan-to-Value and Loan-to-Cost Ratios:

  • In addition to the Equity/Down Payment Requirement, Owner Builder Loans, LLC will not lend more than 75% of project’s appraised values as reflected by the lower of either the sales approach or the cost approach.

Debt-to-Income Ratios:

  • Your debt-to-income ratio cannot exceed 38%.
  • An applicant’s debt-to-income ratio is defined as the percentage of pre-tax, monthly income, which needs to be budgeted to service all compulsory minimum monthly liabilities in addition to an estimated end-loan mortgage amount which includes principal, interest, taxes, and insurance.

If you have any additional questions or are unsure about an underwriting guideline, please call 800-543-5600.

What our clients tell us



"I just wanted to let you know how incredibly impressed we were working with your team. Your loan program made it possible for us to act as owner-builders, something the local banks were not willing to do. Plus, your unlimited draw system helped us to build a quality log home on time and on budget. It was a real pleasure working with you. If we ever decide to build again, we would choose Owner Builder Loans - without hesitation.”

Owner Builders, J.R. and C.R.
Tabernash, CO

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