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Frequently Asked
Questions
Is OBA a bank, mortgage broker, or a builder?
OBA is not a bank, builder,
nor broker, although we have extensive experience in
residential home building. OBA is an alliance that combines the best materials, financing and construction support in the country, bar-none!
Financing includes land, labor, materials and closing costs (with approved credit).
Why should I use the
OBA program and not just buy a house?
There are many reasons why the
OBA program beats buying a house. Why spend your savings when you can
get financing for your home building project? Most people that buy a home must come up with cash for a down payment and/or closing costs
for their home. Down payments can be as high as 10 - 20% of the total cost of the home. Closing costs usually run into the thousands. With the
OBA program, our
qualified customers can obtain a no down payment* construction loan including, closings costs, interest reserve, (no
out-of-pocket payments during construction) at the
best rates in the industry!
Our customers
also understand the value of building their own equity, rather than buying the
builder's equity (profit)! If
you decide to buy a new home from a traditional builder, you can expect to pay the current market value of the home. If it is worth $200,000 you will pay
$200,000. With the OBA program, for example, if the cost to build your home is $160,000 and
it's appraised value is $200,000, you've acquired $40,000 in
realized equity!
What does it take to be a successful Owner Builder?
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First
and foremost, follow the program. It's been designed for
your success.
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A
strong desire to be very involved in the management process of building your home.
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Understand
the value in owner built homes.
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Good
communication skills.
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Available
time to manage your home building project.
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Flexibility
and organizational skills
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Persistence and perseverance.
What separates
OBA from other owner builder programs?
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No
bait and switch (estimating)
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No
pressure (your time frame)
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Complete
design flexibility (any plan, from any source)
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Not
a mortgage broker (we are not paid for loan placement)
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Price
and Quality Guaranteed (the price we give you is the price you pay)
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Immediate
personal responses (office personnel available 8am-5pm EST
Mon-Thurs; 8am-noon EST Friday)
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Owner
Builder Project Portfolio and more!!
What is earned equity?
Earned equity is your reward for all the efforts you put into building your own home. Some
customers only manage the project, performing the duties of a general contractor, while others take on certain tasks of the actual building, i.e.
painting, insulation, clean up, landscaping, etc., commonly know as "sweat equity"
How long does the whole process take?
The process is broken into two distinct phases.
The first is the processing and planning phase. Complete our
pre-qualification application process. This
will let you know how much house you can build when searching home plans and designs. We will assist you in selecting a floor plan, obtaining bids,
ordering an appraisal, finalizing your materials package and completing title work. This phase ends when you close on your construction to permanent loan and takes an average of 45
- 60 days.
The second is the construction phase. Our customers should expect the actual time to build their
home to be between 4 to 6 months; however our lender offers 12-month construction loans to provide a cushion, and make sure you have enough time to build
under nearly all conditions. The average time to build varies due to the various levels of customer participation. Your actual build time will be
determined by how well you run your project and the amount of work you actually do yourself. This phase is complete when you finish your new home and your
construction loan *modifies to a permanent mortgage (*qualified customers).
What are the interest rates?
As we all know, interest rates vary day to day. It's impossible for us to answer this
question;
however, our lender will be glad to discuss this issue with you, as rates also vary depending on each
customer's personal financial situation. Our lender
is committed to helping you get the home you deserve, and will work with you diligently to see that you succeed!
Do I have to own land in order to qualify for the
OBA program?
No, but you will want to locate a suitable lot for the site of your new
home.
Here are some
helpful resources to begin your search:
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Classified Ads - Local and state papers are good sources to find available land. Check in the "Lots for
Sale" section.
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Drive around - Look in the areas that you are interested in building. Many areas have signs advertising available lots
for sale.
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Contact a Real Estate Agent - YellowPages.com or Realtor.com can be a good source to find agents in your area. Tell
them that you're interested in building a home. Ask for lot listings for the area in which
you'd like to build (lots that are not "builder
protected").
Do I have to have perfect credit in order to qualify?
No.
Our lender has helped thousands of people with less than perfect credit gain access to our
owner builder program and the home they deserve!
Can I use my own floor plans?
Absolutely!
OBA's complete design flexibility is unique to the industry. We are
committed to helping you build only the home that you truly want. We are not a "pick one of our plans only" company.
What exactly does a General Contractor do?
First and foremost the general contractor is ultimately responsible for the entire project. You
will be assuming this position; therefore, it is extremely important that you understand your responsibilities. You will be obtaining bids,
scheduling subcontractors, obtaining permits, getting inspections, screening subcontractors, material deliveries, securing storage, paying
subs, submitting draw requests, and generally oversee the construction process of your new home to insure quality, budget
adherence, and time frames etc. This is discussed in
detail in the OBA Project Guide, and remember OBA will be you every step of the way!
How much of the work can I do myself?
That depends on you. At a minimum, our customers have to act as the project manager on their new
home and oversee the building process. Most of our customers do some light work such as painting. Some of our customers, with building experience, do a
lot of the work. The more work you perform on your new home, the lower the total cost, which means more equity!
Ultimately, your level of involvement
depends on your desire to save money, spare time, and your building experience.
Important Note:
If
you do not feel confident in any tasks, it's always best to let a professional do it.
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