Profile picture for user1319249

Desperate need of an answer!

I'm confused and I would appreciate you all's input. I live in Brownsville, Texas(Cameron County). I have heard that if I'd like to build my own home that I need a contractor's license. I have also heard that I do not need a license. I'd like to build my own home because I frankly do not want to pay someone 35-45K just to subcontract the work that I can do myself. On top of that I have friends and family that own the following : Electrical Company(residential and commercial), Plumber(licensed), A/C(HVAC licensed), and Carpenter. My question is this: Can I go to the bank and get the money loaned out for my dream home on my own? Will the bank lend me the money to purchase the lot and pay the subcontractors I will use? Will the city allow me to get those permits everyone is talking about or do the people I contract get them themselves?
  • October 16 2013 - Brownsville
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (1)

You need to talk to your banker and probably the planning and zoning department at the city or building inspector.  They can give you the rules and ins and outs of their part. Likely you can work as your own general contractor, but it could be they require a license.

On the money side...I'm guessing your bank will not lend on lot.  You probably need to pay cash for that.  I'll be surprised if they will loan money on construction to you if you are not an experienced and licensed builder.   Doesn't hurt to ask and perhaps ask more than one lender.  I'd start with the small local bank where you have your accounts now....if that doesn't work then check with other local banks.

The reason they typically will not lend money on such a project is that the risk of them getting it back 1/3 done or 1/2 done is good....they don't want a 1/2 done house.   

One idea if all these people are your friends is to build the house, pay cash for the materials and get a loan once it is done...to pay back your friends.   This would be termed...cash out refinance and also has all kinds of restrictions.
  • October 16 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.