The bottom line is -- if you want to be absolutely sure that your project is professionally completed then you need to hire a reputable General Contractor.

Here are some questions you should ask yourself before you decide to "do it yourself":

* Do I really have the time to devote to building the home myself?  If the answer to this is "no" then don't read any further.  A construction loan has time limits and if you can't meet the deadlines for completing your project you could be hit with substantial penalties.  Don't put yourself or your home in jeopardy if you're just planning on being a "weekend warrior"... that won't work.  Hiring a reputable General Contractor will help insure that your project is completed on time without experiencing any costly penalties due to extensions on your construction loan.

* Do I have the necessary expertise to do this myself?  If you have no construction experience whatsoever, then you really need someone with experience at least assisting you with your project -- if you decide to do it yourself.  Building a home can be stressful, but doing it yourself without any experience can quickly turn your dream home into a nightmare.  Be sure you look carefully before you decide to leap.  At the very least you should have an experienced builder erect the shell and dry it in.  Then you might be more able to hire subs to finish out the interior.

* Do I have the working capital necessary to do this myself?  In most cases (other than payments for the log materials package) you will need to have the work in place before you can obtain a draw.  You will need some working capital to help float your project until the draws can be disbursed.  You may also run into areas where your actual costs come in higher than what you allowed for in your budget.  Make sure that you set up a "contingency reserve" in your building budget to protect against cost overruns.  Working with a reputable General Contractor will typically minimize this exposure since they have a much better handle on all the costs that go into the construction of your home.

* Do I have the ability to manage sub-contractors?  Alot more goes into building a home than just the construction project itself.  Managing sub-contractors is just as much of an art as it is a science.  Proper scheduling is critical.  You must schedule your sub-contractors well in advance in order for them to put you on their schedule.  A flooring guy may not be able to come out for weeks due to another project so you need to coordinate with him long before your flooring is ready to be installed.  What do you do if a sub-contractor walks off the job or isn't doing a quality job?  If you're not prepared for things like this your project can get bogged down in a hurry.  Hiring a General Contractor to manage these issues removes the added stress of those types of problems.  A General Contractor would know exactly when to schedule and exactly how to handle the dynamics of working with the sub-contractors he hires.

While we're not trying to discourage those of you who dream of doing this yourself, we just want you to be looking at all angles -- preparing yourself for the good and the bad.  We feel it's our job to educate you on all the issues so that you can make an informed decision on what's in your best interest.

Let us know if you have any additional questions with which we may assist you in your decision.

Our one-time close program is available for Owner Builders!  One closing - ONE SET OF CLOSING COSTS!  Loan amounts up to 75% of the appraised value!  This program is a more traditional construction-perm program.  You have up to 12 months to complete the home; other than payment for the log materials package the work must be in place before you can receive a draw to pay for it.  Most cost-efficient program available from a "loan fee" standpoint since you only have one closing.  Once your home is complete you automatically roll into your permanent mortgage.  The equity in your land can be credited towards the 25% minimum investment requirement.

We will require a new appraisal and obtain two values -- the value of your project in its current state and the value of the project once it's finished. 

Depending on the program that you qualify for... our overall construction loan will be maxed out between 65-80% of the appraised value (the value of the project once it's finished).

Depending on the program that you qualify for... if the value in its current state is at least 20-35% over your current construction loan balance (what you've drawn thus far) then we'll be able to pay off your current lender and get you back on track!