Because many local banks are wary of financing owner builders, a market has arisen online to address the void. There are several online lenders that specifically cater to the owner builder. Usually they will put some basic requirements in place before approving the loan.

For example, most owner builder financing is dependent on having an lender approved consultant. Some lenders require it be a "preferred" consultant.

This gives the lender some assurance that an experienced contruction manager is monitoring progress. Sometimes these consultants may have a referral agreement with the bank as well.

While we encourage the owner builder to manage the project on their own, they may still benefit from having a construction manager assisting them with the project. This is especially true if it means the owner builder will recieve a better interest rate on their loan.

Reviewing the programs available should be part of your preconstruction process. Always check with your local bank first, but shop around for better rates and easier terms from online lenders. There are a number of very reputable firms providing owner builder financing.