How We Got a Construction Loan as Our Own General Contractor (Owner-Builder)

If you’ve followed our home build, this is the question I get every single time I share anything construction-related:

“How did the bank approve your construction loan if you were your own general contractor?”

The answer surprises people.

It wasn’t because we had a loophole.

It wasn’t because we got lucky.

It was because we proved we could manage the risk.

Let me walk you through exactly how this works and how you can do it too.

First: Yes, We Were Our Own General Contractor

• We did not hire an outside GC

• We did act as the general contractor ourselves (my husband, an angel)

• We coordinated subs, schedules, budgets, and inspections

In bank terms, this is called an owner-builder or owner-GC.

Some banks allow this. Some don’t.

That’s why who you bank with matters.

What Banks Actually Care About (This Is the Key)

Banks don’t approve construction loans based on titles.

They approve them based on:

• Risk

• Oversight

• Completion confidence

Their biggest fear is:

“What happens if this project stalls or goes over budget?”

Your job is to show them why it won’t.

Why Our Bank Was Willing to Lend to Us

Before we ever applied, we already had:

• A long-standing relationship with the bank

• Previous loans we had paid off successfully

• A track record of financial responsibility

This told the bank:

“These borrowers finish what they start.”

What the Bank Required From Us as Owner-GCs

This is the educational part most people miss.

1. A Detailed, Line-Item Construction Budget

Not estimates.

Not vibes.

We provided:

• Costs broken down by trade

• Materials vs labor

• A contingency buffer

• Also brought in our printed blue prints

This showed we understood the true cost of building.

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2. Real Subcontractor Bids

Because we were acting as the GC, the bank needed proof that:

• Subs were lined up

• Pricing was real

• Work would actually get done

So we brought:

• Written quotes

• Vendor pricing

• Scope clarity

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3. Proof We Could Manage the Build

We didn’t just say “we can handle it.”

We showed:

• Prior experience managing projects

• Clear communication plans

• Willingness to work with inspections and draw schedules

Banks don’t expect perfection, they expect structure.

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4. A Construction Timeline

It didn’t have to be perfect.

It needed to be:

• Logical

• Realistic

• Thought through

This helps banks manage draw schedules and risk exposure.

How YOU Can Get a Construction Loan as Your Own General Contractor

Here’s the step-by-step roadmap.

Step 1: Find a Bank That Allows Owner-Builder Loans

Not all banks do.

Look for:

• Local or regional banks

• Lenders familiar with construction loans

• Willingness to review owner-GC proposals

Ask directly:

“Do you allow owner-builder construction loans?”

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Step 2: Build the Relationship Before the Ask

Before applying:

• Keep accounts clean

• Pay off or responsibly manage existing loans

• Communicate early

Banks lend to people they trust, not just qualify.

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Step 3: Over-Prepare Your Documentation

You should walk in with:

• Detailed budgets

• Sub bids

• Timelines

• Backup plans

• Printed blue prints

Preparation = reduced risk.

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Step 4: Be Honest About Your Experience

If this is your first build, say that.

Then explain:

• How you’re mitigating risk

• Who you’re leaning on for expertise

• How decisions will be made

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Step 5: Treat the Bank Like a Partner

This isn’t a transaction.

Respond quickly.

Ask questions.

Follow their process.

Who This Approach Works Best For

Being your own GC isn’t for everyone.

It works best if you:

• Are organized

• Can manage schedules and people

• Are comfortable making decisions

• Are willing to own mistakes

This is real responsibility — not a shortcut.

Final Thoughts

We didn’t get approved because we avoided a GC.

We got approved because:

• We had a strong banking relationship

• We paid off previous debt

• We came prepared

• We proved we could manage the build responsibly

That’s how owner-GC construction loans actually work.

Want Tools That Would’ve Saved Me Time?

I’ve shared the exact types of tools I wish I had during our build:

• Build planning guides

• Budget trackers

• Finish organization tools

You can find them all in my DesignxDani Resource Library.