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How To Build a Custom Home

Sometimes, buying an existing home is just not right for you. You may prefer a new home over an older house, you may be a homebuyer who’s tired of competing for existing homes, or maybe you just don’t want to be in a neighborhood, or you prefer a completely unique house plan. Sometimes, you just want to build your own home.

A Quick Overview On Building A Custom Home

When building a fully custom new home, the builder is hired as a contractor to build your home.

The loan is in the name of the landowner/buyer, not in the name of the builder, and the construction loan often becomes the permanent loan after the home is completed. A buyer can purchase land using a construction loan or just buy the land first and use it as part of the collateral for the loan.

With this scenario, the landowner owns the land and house during the entire construction process. This gives the owner more influence and control over the process, but they also carry the interest on the loan and make interest only payments on the construction loan balance during the building of the home.

The lender does periodic inspections of major system progress, like foundation, framing, roofing, plumbing, and electrical, to determine when to release funds to the builder, called a ‘construction draw’. The construction draw timetable is estimated ahead of time as part of the loan process.

With a fully custom home, the landowner/buyer can design a floor plan with an architect or explore top plans on popular sites like,, or Many local custom homebuilders have plans they can share and customize as well.

Path & Post is happy to recommend top local builders for your project. Building a fully custom home can be an expensive journey, but it can also be rewarding to create a one of a kind masterpiece!

How To Buy Land

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