Cracking the Code

The allure of a custom-built home, perfectly tailored to your desires, is on the bucket list for many of us. But let’s face it, the price tag can be enough to send shivers down your spine. Don’t despair! We’re here to share some strategies and experience to combat those construction costs and turn your dream home from back of napkin to reality.

1. Rethink “Custom”:

While complete customization is an option, consider exploring semi-custom homes offered by many builders. These homes often have pre-designed floor plans with a variety of customization options for finishes, fixtures, and layouts. This allows you to personalize your space without the hefty price tag of a fully custom build. If you’re thinking complete custom, do you need a local architect and engineer, or would online plans provide the same result at a more affordable option?   There are some great designs and build firms out there (Our Home Designs | G.J. Gardner Homes USA (gjgardner.com), Brown Haven Homes | New Home Builders in GA, NC, TN and SC or Custom Home Builder | Americas Home Place that offer existing plans to choose from and in which you may be able to make minor modifications to help save time and money compared to the traditional architect and engineer method. You may want to bring in a project manager to do the negotiating for you like Find local general contractors near you for free | BuildZoom

2. Embrace Efficiency:

System-built homes are rising stars in the homeownership scene. These homes are constructed in sections in a controlled environment, leading to several advantages:

• Reduced Costs: Factory production streamlines the process, often lowering the cost per square foot compared to traditional stick-built homes. The average cost of a system-built home is $100 -$200 per square foot vs the stick-build costs of $150 – $400 per square foot depending on the area.
• Faster Construction: System-built homes can be completed in shorter timeframes, allowing you to move in sooner and save on rent.
• Quality Control: The controlled factory setting ensures consistent quality and minimizes construction defects.

Different types of system-built homes cater to various preferences:

• Modular Homes: Built in complete sections and transported to the site for assembly.
• Panelized Homes: Walls and roof panels are pre-built in a factory and assembled on-site. Structural Insulated Panels (SIPs) help achieve the goals of achieving energy efficient and high-performance building enclosures.
• Pre-Cut Homes (Log Cabin): Lumber is pre-cut and numbered for on-site assembly.(here is a great resource for all you need to know about building a log cabin The Original Log Cabin Homes, Custom Log Cabin Kits
• A winner for the most requested home style is the Barndominium (here is a great resource for all you need to know about a barndo Barndominium Life – Celebrating the Barndo Lifestyle!)!

3. Get Creative with Materials:

While high-end finishes are tempting, consider cost-effective alternatives that still deliver on style and functionality. Explore options like laminate flooring instead of hardwood or quartz countertops instead of granite.

4. Go Green, Save Green:

Energy-efficient features like ENERGY STAR appliances and LED lighting may have an upfront cost, but they translate to significant savings on your energy bills over time. Additionally, some green building practices may qualify you for tax credits or rebates, further reducing construction costs.

5. Embrace DIY (Do-It-Yourself):

While not everyone’s cup of tea, tackling some aspects of the project yourself can save a significant amount. This could include painting, landscaping, or installing certain fixtures. Remember, consult with professionals for tasks that require expertise and prioritize your safety and quality. This approach can have an impact on your ability to finance the construction with reasonable terms.

Here’s where Waterstone Mortgage steps in to make your dream home a reality.

Our Single Close Construction Loan Program streamlines the construction process, allowing you to finance the land, construction, and permanent financing all in one loan. This means less paperwork, less stress, and more time to focus on the exciting parts of building your dream home.

Many lenders require a 20% down payment for new construction loans, but Waterstone Mortgage’s Single Loan Close Construction Program (SLCCP) only requires a 5% down payment, making it more attainable for those. If you already own the lot, depending on the investor, you may be able to use that equity toward the required down payment.

Remember, building your dream home is a journey, not a destination. By strategizing, exploring alternative options, and making informed decisions, you can turn your dream into a reality without breaking the bank.