Traditional vs. Modified Owner Builder Programs: Evaluating Your Options

Are you planning an owner builder construction project? Builder Loans offers two specialized programs: the Traditional Owner Builder Program and the Modified Owner Builder Program. Each program is tailored to your specific requirements and provides unique benefits. Delve into the characteristics and advantages of both programs to determine which one best fits your needs.

Traditional Owner Builder Program for Licensed General Contractors

* Requires a general contractor’s license and liability insurance * Builder must have a minimum two-year track record in the industry * Builder receives an IRS 1099 Form documenting payments from the bank

Modified Owner Builder Program: Increased Control and Savings

* Borrower must hire a licensed project manager * Borrower receives funds directly from the bank to manage payments and pay subcontractors/vendors directly * No 1099 issued to the general contractor or subcontractors * Borrower must provide a parallel cost breakdown from the project manager, ensuring the construction cost is reasonable, excluding the builder’s markup, profit, and overhead

Benefits of the Modified Owner Builder Program

Savings Potential: Save approximately 5% on your construction cost with the Modified Owner Builder Program, equal to a 0.25% interest rate reduction over 16.5 years.

Select the Perfect Owner Builder Program for Your Construction Project

Ready to choose the ideal owner builder program for your construction project? Contact Builder Loans today to learn more about the Traditional and Modified Owner Builder Programs and find the best option for you. Call us at 415-800-2190 or email us at info@BuilderLoans.NET.