Some call it sweat equity or knowing friends in the right places – Kalamazoo County State Bank (KCSB) calls it offering clients the ability to self-contract and allow for partial work with their construction loan.
One of the best known secrets of KCSB’s Construction Loan Program is the ability to self-contract and allow for partial work. Very few banks allow self-contracting today as part of a construction loan, especially allowing partial work. KCSB allows for sweat equity!
Typical Self-Contracting Projects
In today’s competitive market, building your own home can be a great opportunity especially if you can do some of the work. Oftentimes this work includes having a builder who will do some of the major work like your foundation. Then you can decide what projects you can do and perhaps what projects some of your talented friends can complete for you.
Typical projects included in self-contracting and partial work can include this type of sweat equity:
- Dry wall
- Electric
- Plumbing
- Flooring
- Painting
- Trim work
Self-Motivation a Must
As a self-contractor, you know yourself. You know if you are a self-motivator and can get the job done! You’ll want to create a self-contracting/sweat-equity plan that feels comfortable and manageable for you. You’ll want to work with a builder who feels comfortable with the projects you want to include in your self-contracting/sweat-equity plan. You will need to demonstrate to your builder, banker and yourself that you are self-motivated, i.e., you can organize and complete the work in your plan and in the time required.
Here are some qualities that self-contractors usually possess:
- Coordinate well with the builder
- Communicate job requirements to friends or others completing projects
- Gathering the materials needed to complete the project
- Overseeing the project, from start to finish
- Tackling problems as soon as they arise
- Ensuring that projects are completed according to plans
- Ability to meet deadlines
Excellent Communication Skills Needed
When hiring a friend, or someone to complete this work for you, you’ll want to make sure they understand exactly what you are requiring of them to complete the project. You’ll want to ensure you have excellent communication regarding problem-solving, quality and deadlines. In the end, you’ll want to feel good about leaving this person(s) to produce high-quality work with minimal supervision.
For more information on how you can finance a home construction loan with self-contracting, call your home construction lending experts at KCSB. KCSB is one of the few lenders who offer the ability to self-contract and allow for partial work with their construction loan.
Whether you call it sweat equity or knowing friends in the right places – KCSB calls it understanding your ability to self-contract and do partial work with your construction loan.
To learn more about one of the best known secrets of KCSB’s Construction Loan Program, call 269.679.5291 or visit one of our branch offices. See https://kcsbank.com/locations to find a location most convenient for you. Discover the possibilities of using your sweat equity today!
Kalamazoo County State Bank is an Equal Housing Lender.
