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Should you hire a builder or be an owner builder?

The goal of being an owner builder is mainly to save money. Some people can save quite a bit of money if done correctly.

Possible problems when acting as owner builder are:

1. Construction cost over runs.
2. The best banks with the best rates require a builder or management contract.
3. Managing contractors to finish on time or to show up for work.
4. Depleting your personal savings.
5. The need to borrow more money.
6. Loan extension penalties.
7. Being taken by unscrupulous contractors.
8. The need to refinance your construction loan.
9. Foreclosure.

I could go on and on about the horror stories I hear from owner builders

If you've never built a home before and absolutely need to act as owner builder please take my advice and hire a reputable builder to manage your project. By hiring a builder on a management basis you can build your home and still save money.

The builder/manager will help you with the cost breakdown and manage the project to make sure your new home is completed and to insure the project comes in under budget.

If you are a builder and want to build your home as owner builder that is not a problem but you need to understand that most banks will require you to provide 2 years tax returns for qualifying.

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