I’m sharing the entire process of how to build your own homestead step by step with this DIY building tutorial! So you can build a homestead yourself too!
Darin and I built this farmhouse in 2017 acting as our own general contractor. All labor performed on our home was done by licensed professionals. However we saved the fifteen percent fee that general contractors charges for managing a new home build. In 2020 we sold that beautiful house to do it all again! We have done this several times, and I’m going to share the process, so you can learn how to build your own home too.
Homestead Builder Step By Step Guide
My husband worked 8-16 hour days running his own company. So, as a stay at home mom, I took the reins of building our home and I did it time after time till our home was paid off. If I can do it… So can YOU!
As an owner builder you not only save the 15% that a general contractor charges, and money on wasted materials or excess materials.
If you are interested in building your own home and saving thousands of dollars too, get the step by step guide in my ebook!
I take you from financing, planning, permits, organization and through each step of building your own home. I share how I did it, and walk you through the process so you can to!
Before You Even Think About Building… You Need To Find Land!
Before we get into the basics of how to build your own home, or farmhouse, you need to find land!
We like to build on acreage outside the city limits, because it’s easier to find land you can build on in these areas.
Subdivisions are often owned by builders, or developers that have a builder, and require you to use their service.
How To Build Your Own Homestead
Step 1 – Getting Plans
By this time you’ll need some home plans, if you haven’t already got some… Most women probably knew what they wanted, or before even talking to a lender.
I love looking through house plans online, and bought our first DIY home build from plans purchased online. HOWEVER, I’ve also drawn plans they way I want them on graph paper, and then had those professionally drawn by a framer or draftsman.
The first time we generalled our own home I bought plans online. The house turned out beautiful, but I had no idea that the front room would be two story. I also didn’t know that the window above the front door would be square. The picture on the plans showed an arched window that I loved.
Unfortunately, I couldn’t read the plans very well, so I missed a lot of details. I wished I would have known before starting the project. (Contractors HATE it when you change things in the middle of a project and will charge you extra for changes. So, it’s best to make sure the plans are exactly what you want before getting bids or starting the project!) I’ll show you how to get the perfect plans!
The last two homes we built, I drew house plans exactly how I want them, and had a professional draw them for subcontractors and permits.
How to Build Your Own Homestead
Step 2: Getting Bids on Material and Sub Contractors
When you’re learning how to build your own home, you might hire the first roofer that answers his phone. HOWEVER, you should always get at least three bids for each type of contractor you’ll be hiring. For example: get three bids from excavators.
You’ll also want to get several bids from material providers like Home Depo and your local building supply businesses.
This process will help you ensure you are getting fair prices from all your subcontractors.
I’m sharing how to get the right subcontractors for building your own home. I’ll walk you through the organization that I use and the entire process step by step!
Step 3: Budget – Get Financing To Build Your Own Homestead
Getting a budget put together is the first step to building your own home. There are a few ways to do that… The most common way is to find a good lender by interviewing several first.
Darin and I have used several lenders along the way including big mortgage banks and small community credit unions. We’ve learned that some big banks won’t lend to an owner builder. Working with the smaller community credit union has been better for us. They offered better interest rates, very low loan fees, were fast to approve us, and easier to talk to.
When you are an owner builder a lender must have enough confidence in your abilities to invest in your project. So having a contractors license helps, but if you don’t they will be much easier to work with. Our first two owner builder homes we started with a large nest egg that wasn’t big enough to finish. After the home was framed in and roofed, we went to the lenders to finish the project. To do this you must have all receipts with lien waivers from all contractors for the bank. Both of these were financed through our local credit union.
All lenders will require your subcontractors to sign lien waivers before checks for payment are issued. Lenders will require copies of those lien waivers. If a subcontractor does not get paid, or says he didn’t, they can lien your home for the ballance. No bank wants to invest in a property that has liens on it.
After building our own home 4 times, rolling the profit from one home to the next, we built for cash! It’s a great way to get out of debt.
Building a house for cash is always cheaper, and easier, than financing. Lenders charge loan fees and interest as your project draws out funds.
Step 4: Get City/County Building Permits
When you have: your financing-budget in order, subcontractors picked out and priced, and plans in hand, you can start the process of securing permits!
- Perk tests
- Septic permit
- RES check on plans
- Estimated final cost or value of home.
- A few thousand dollars (differs for each city and county)
- Make changes required by planning and zoning official.
- WAIT for approved plans.
Get Started Building Your Own Homestead – Breaking Ground!
This is the exciting part… Now that you’ve got all your ducks in a row you get to break ground! This is the exciting part when you really start building your own home! I’m taking you through the process step by step in my Build Your Own Home Guide. Learn how to build your home and schedule subcontractors 1st, 2nd, 3rd… and so on, till your project is finished!