Construction Loans and being your own general contractor? | TigerDroppings.com

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vettegc
LSU Fan
Livingston
Member since Dec 2006
110 posts

Construction Loans and being your own general contractor?


Anybody know which companies allow you to do this?






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pdubya76
Ole Miss Fan
Uncle PO Sted's place
Member since Mar 2012
1612 posts

re: Construction Loans and being your own general contractor?


Small town banks may be your best bet. I am building a house right now and am the contractor. No real issues so far. The bank we are using is real easy to deal with. Just call and tell them how much I wrote the check for and it's done. We owned the land free and clear. We also had approx 1/3 of the total in cash upfront. It's been a pretty straightforward process so far.





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Crimsonsaint24
Alabama Fan
Alabama
Member since Jul 2011
549 posts

re: Construction Loans and being your own general contractor?


I know the bigger banks like BBVA will not loan you money due to the risk that you aren't a licensed contractor. I went to a local smaller bank and didn't have a problem getting my construction loan.





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silstang23
LSU Fan
Bossier City, LA
Member since Oct 2007
4256 posts

re: Construction Loans and being your own general contractor?


As the others have said your best bet would be with a smaller local bank. I built 2 years ago using a construction/interim loan from Citizen's National Bank in Bossier City. Never used them before as I have always banked with Capital One/Hibernia.





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Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80124 posts

re: Construction Loans and being your own general contractor?


quote:

vettegc



how do you suppose you're going to be something you're not? how are you going to purchase a builders risk policy?






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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1958 posts

re: Construction Loans and being your own general contractor?


whitney bank will but the terms are different than if you have a general contractor.





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ScottieP
LSU Fan
Baton Rouge, LA
Member since Feb 2004
1746 posts

re: Construction Loans and being your own general contractor?


quote:

how do you suppose you're going to be something you're not? how are you going to purchase a builders risk policy?


People do it successfully all the time.

To get a builders risk policy just call your insurance company and tell them your building a house. Its not hard.






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TIGRLEE
LSU Fan
North Louisiana
Member since Nov 2009
21116 posts
 Online 

re: Construction Loans and being your own general contractor?


I'm doing this now.

Saving prob around 30-40 sq ft.
Smaller bank.






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pdubya76
Ole Miss Fan
Uncle PO Sted's place
Member since Mar 2012
1612 posts

re: Construction Loans and being your own general contractor?


Mine is insured through State Farm.The builders risk policy converts to the normal homeowners once its complete.





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ScottieP
LSU Fan
Baton Rouge, LA
Member since Feb 2004
1746 posts

re: Construction Loans and being your own general contractor?


quote:

Mine is insured through State Farm.The builders risk policy converts to the normal homeowners once its complete.


Exactly what I did. Not really sure why this was questioned by a previous poster. Was actually one of the easier things I had to deal with to get construction moving.






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slapahoe
LSU Fan
USA
Member since Sep 2009
3485 posts

re: Construction Loans and being your own general contractor?


quote:

I'm doing this now.

Saving prob around 30-40 sq ft.
Smaller bank.



Sorry for the old bump

Didn't realize one could save that much by contracting it yourself. Seems like a no brainer for anyone who is looking to build like myself.






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Bubba Bexley
LSU Fan
Member since May 2007
3579 posts

re: Construction Loans and being your own general contractor?


I went through Trustmark a few years ago. Didn't have any trouble back then, but their regulations may have changed since. I'd just send them an email on Thursday morning telling them how much I needed put into the account, and it was there on Friday for me to write checks.

On builder's risk, the only issue I had is my homeowners and auto policy is with Alfa. Their builder's risk wouldn't cover theft until locks were on the doors. Not sure if that is standard or not.



This post was edited on 9/16 at 12:58 pm


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bamanmemphis
Alabama Fan
Member since Sep 2009
647 posts

re: Construction Loans and being your own general contractor?


quote:

Saving prob around 30-40 sq ft.


Not a guarantee, just depends on if you want to risk it.

Also, quality could take a hit. Home builders do not typically make a 40% profit (based on average of 100 a square)






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TIGRLEE
LSU Fan
North Louisiana
Member since Nov 2009
21116 posts
 Online 

re: Construction Loans and being your own general contractor?


I'm going through local bank and doing this.
I'm trying to sell my house now wich is taking lot fricking longer than I anticipated.

Glad I decided to wait on starting to build.
I don't need a 4k month mortgage.






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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
21104 posts

re: Construction Loans and being your own general contractor?


I am my own general contractor but hire a builder to oversee everything. I just pay the subs directly instead of a contractor taking a percentage.





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TIGRLEE
LSU Fan
North Louisiana
Member since Nov 2009
21116 posts
 Online 

re: Construction Loans and being your own general contractor?


That's what I'm doing.
Plus picking out colors and brick and doors and cabinets and bathtubs and toilets ect ect ect.






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