Guidelines for Owner Builder Construction Loans by CCS Loans.

Video Transcript:
Welcome to another short video about construction loans. We'd like to give a short word on owner/builder construction loans, since most lenders don't do them.
An owner/builder construction loan is a loan where the homeowner is acting as the general contractor on their home. They can perform the work on the home, or sub everything out just like a general contractor. Now most lenders won't lend to owner/builders, as they perceive the projects as too risky. But at Construction Capital Source, we have had great success with our owner/builder clients, and welcome their loans.
There are a few different requirements on the loan, however, so let's discuss what those are:
1st, since there is no general contractor to carry the liability insurance, a personal liability policy must be added to the homeowners insurance in the amount of $300,000 during the construction period.
2nd, We need to have a letter of experience from the owner/builder, just explaining what experience he or she has to build their home. If they know absolutely nothing about construction, it is best for them and for us, that they not get in over their heads.
And Last, remember that the documentation that would usually apply to the contractor, such as the builder questionnaire or the contractor's license, won't be required.
Now, you can see the complete documentation list for owner builders on the submission form, which can be found under the forms tab on our website, ccsloans.com.
And please call in and talk to one of our construction loan experts to talk to us about your project.