Hi everyone, Ive been lurking on and off for a couple of months and will close on a land parcel today. Most of my research on youtube seem to be couples who prefer to be more offgrid and DIY their ICF builds. My question is this: Im planning to build inside a neighborhood, will purchase the land cash, and look to become the general contractor for a construction loan, has anyone else done this?? With the cost of materials today, I would prefer all of the loan be used in the build of the house rather than ~20% to finance a general contractor. Thanks Marty

It all depends on your capability and drive to get the people to get the work done. We did most of the work on the 2 houses I have built and it was almost as much work getting someone to do something then it was to just do it yourself and cheaper.

What have you built/rebuilt?

We had a loan on the property and the construction loan payed off the land. You can do it that way also and have more cash for yourself that way. Cash is what you need to keep going.

The plan was the hire subcontractors the entire way through. I've only done minor work in construction when I was in college. Im in south GA and it seldom seems anyone has even heard of ICF so Im wondering what approaching the local bank for the construction loan will be like or if they were willing to finance a non-stick project, which is why I was curious why most ICF builders on youtube are ownerbuilders vs GCs who utilize construction-to-perm/sell Happy new year everyone!

Marty, search for ICF BUILDERS IN SOUTH GEORGIA.

What is the nearest town to your lot?

I don't think the bank even cares about ICF....I don't even remember telling our bank it was ICF.

They just want a plan and for you to follow it to get your draws from the loan.

You might get a small increase to the loan ratio based on ICF (this will depend on the band you are dealing with). In our area (Canadian Prairies) where heating costs can be substantial, some banks are open to looking at a reduction in the anticipated heating bill (normally a number based on square footage). If you can submit a report similar to the ICFMA report by Cleb Laboratories that indicates an expected savings around 60%, they MAY reduce the monthly costs accordingly.

I do agree with previous post that you should include the land on the mortgage and hang onto your cash. Often funds are only dispersed at inspection stages (maybe 5 total draws through entire construction) so you will have to self-finance between draws, which can be costly.

Again- your area may follow a different approach to mortgages so best to speak with your banker or a few banks to view options for draws, rates, down payments, etc.

Posted By newbostonconst on 03 Jan 2022 11:53 AM
I don't think the bank even cares about ICF....I don't even remember telling our bank it was ICF.

They just want a plan and for you to follow it to get your draws from the loan.

Okay. Im doing a material takeoff list for the loan proposal. Is there anything else the banker requests for that I should be prepared for? Thank you

Posted By ICFBdr on 03 Jan 2022 06:04 PM
You might get a small increase to the loan ratio based on ICF (this will depend on the band you are dealing with). In our area (Canadian Prairies) where heating costs can be substantial, some banks are open to looking at a reduction in the anticipated heating bill (normally a number based on square footage). If you can submit a report similar to the ICFMA report by Cleb Laboratories that indicates an expected savings around 60%, they MAY reduce the monthly costs accordingly.

I do agree with previous post that you should include the land on the mortgage and hang onto your cash. Often funds are only dispersed at inspection stages (maybe 5 total draws through entire construction) so you will have to self-finance between draws, which can be costly.

Again- your area may follow a different approach to mortgages so best to speak with your banker or a few banks to view options for draws, rates, down payments, etc.

I was thinking the same regarding 'selling' the idea why it is safer for the bank to finance an icf build over stick since it puts less financial burden on the borrower on a monthly basis. Furthermore, homes in Augusta Georgia are rented during the week of the Masters, making the house an actual cash flowing asset. Its nice having people pay for my choice of finishes :) I will find out the draw schedules for each bank and use our land as collateral. Thanks so far everyone

Do you really need a materials list if you are contracting each step. Just list structure, roof, plumbing, electrical, insulation, fixtures, bathrooms , and on and on (drywall, furnace, ....... List ICF as insulation? The more you put the more they hold you to and make sure you have done before they give you money for a draw. Make the list shorter and tell them if they have to have more detail then let you know.

Marty32 please post regular updates as I am planning a similar project to start in the Spring of 2023. My thought is, to ‘newbostonconst’ point, it is difficult to find good help that will honor the commitment but to answer your question about DIY versus GC you need to take a long hard look at your situation, which is what your bank will do. For instance, you cannot possibly hold a full time job and expect DIY every aspect of a home build. There are plenty of books and even a few courses out, like ownerbuilderclass .com, that will help you understand some of the pitfalls. Even if you are one of a very few fortunate people that doesn’t have a full time job yet can still afford to build a new house, it is still heavily reliant on your ability to find good help. Before you even approach the bank, I recommend, as others have stated, have a comprehensive plan. To aid with the “good help is hard to find,” aspect, make sure you have good insurance, that your subs have the appropriate insurance, and get each sub-contractor you plan to award on a contract (yes, you will need to lawyer to review each). Hiring a sub-contractor without a solid contract would be a HUGE mistake. A contract legally binds the sub to do the work as agreed; and should layout the ground rules, performance work statements (quality craftsmanship), scope of work, scheduling, and terms of payment. Additionally, keep in mind that a contract is a signed commitment of both parties, so you need to be able to honor it. You might consider hiring a builder that has done prior ICF construction as a consultant and maybe even use their crew to do the pours.