Capital Kings LLC

Can I be my own builder on a construction loan?

Yes, after your first finished build. On build one, lenders want a general contractor with 5+ finished builds under contract, and you still own the project. With one finished build you can be the builder: on an $80,000 lot and a $320,000 build that is 10.49% on Lower Fees with $78,552 to close, or 9.50% with the Financed Interest Reserve and $50,072 to close.

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Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

Rates as of October 2026

$80,000 lot, $320,000 build, 745 credit, you as the builder

Cash to close, 1 finished build

$78,552

Rate, Lower Fees10.49%
Rate, Financed Interest Reserve9.50%

At a glance

The deal, in pictures

From first build to building it yourself

1Build one
A general contractor with 5+ finished builds runs the job. You own the project.
2Finish it
Sell it or rent it. That finished build is your track record.
3Build two
You can be the builder. Lower Fees drops to 10.49%.
4Five or more
The Financed Interest Reserve drops to 8.49%.

Lenders count finished builds, yours or your contractor’s on the first one.

Capital Kings · capitalkings.co · rates as of October 2026

Cash to close: The money you bring to the closing table: down payment plus every closing cost.
Proof of funds: Cash the lender wants to see in your bank statements. Only the cash to close is spent; the rest stays yours.
Reserves: Months of payments or interest you show in the bank. They stay in your account.
Draws: Rehab or build money released after each phase is finished and inspected.

In short

The short answer, as of October 2026

First build: hire a general contractor with 5+ finished builds. A first-time owner-builder file rarely closes.
One finished build: you can build it yourself, at 10.49% on Lower Fees or 9.50% with the Financed Interest Reserve.
Five or more finished builds: the Financed Interest Reserve drops to 8.49%.

Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.

Worked example

Every dollar, line by line

An $80,000 lot, a $320,000 build and a $560,000 finished value, 745 credit, built by you with one finished build. The real term sheets:

Cash to close$78,552

Proof of funds to show$144,385

Where the $78,552 goes

Land down paymentEquity$60,000
Appraisal feeAppraiser$550
Prepaid interestLender$86
Origination and lender feesLender$8,100
Broker feeBroker$3,400
Closing / titleTitle co$4,016
Builder’s risk insurance (estimate)Insurer$2,400

Priced for a builder with one finished build. Proof of funds adds $48,000 to start the build and $17,833 of interest, money that stays in your account. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

The numbers

Compare the options

The same build at three levels of experience, on both loan structures. Finished builds lower the rate and raise how much of the cost the loan covers.

Who builds it, and what it costs

	Rate	Loan (of cost)	Cash to close	Your cash in the deal	Proof of funds
First build, a GC with 5+ builds, Lower Fees	11.74%	$340,000 (85%)	$79,257	$79,257	$147,215
First build, a GC with 5+ builds, Interest Reserve	9.50%	$360,000 (90%)	$49,173	$82,273	$82,273
You build it, 1 finished build, Lower Fees	10.49%	$340,000 (85%)	$78,552	$78,552	$144,385
You build it, 1 finished build, Interest Reserve	9.50%	$380,000 (95%)	$50,072	$64,122	$64,122
You build it, 5+ finished builds, Lower Fees	10.50%	$360,000 (90%)	$60,032	$60,032	$126,932
You build it, 5+ finished builds, Interest Reserve	8.49%	$380,000 (95%)	$46,062	$62,193	$62,193

$80,000 lot, $320,000 build, $560,000 finished value, 745 credit. Interest Reserve is the Financed Interest Reserve; its loan share includes the reserve. "Your cash in the deal" is cash to close plus any build cost the loan leaves to you. Investment properties only, built to sell or rent. Rates as of October 2026.

Price my deal →Size your build on the construction page Construction loans by state

How it works

Good to know

An owner-builder is the borrower acting as the general contractor: hiring the trades, running the schedule and signing off on each draw. The lender is betting on the house getting finished, so who builds it is the first thing they look at.

On a first build that has to be an experienced general contractor, 5+ finished builds, under contract for the job. You still own the project and keep the profit. Once that house is finished, it is your track record.

With finished builds of your own, lenders review your completed projects, your insurance and any license or registration your city requires, then let you run the job. The rate drops too: 10.49% on Lower Fees here, against 11.74% on a first build.

These are business-purpose loans for houses built to sell or rent. If you are building a home to live in, you need a construction-to-permanent loan from a bank or credit union.

Questions

Straight answers

Can I be my own builder on a construction loan?

Yes, once you have a finished build. On a first build, lenders want a general contractor with 5+ finished builds under contract. With one finished build you can build it yourself: 10.49% on Lower Fees or 9.50% with the Financed Interest Reserve, as of October 2026.

Can I be my own general contractor on my first build?

Not in our experience. We have not found a ground-up lender that funds a first-time owner-builder. Hire a general contractor with 5+ finished builds for the first house, then build the next one yourself.

Do I need a contractor license to be an owner-builder?

It depends on your state and city. Lenders want to see your finished builds, your insurance and any license or registration your city requires. Texas has no state license for home builders, so there it comes down to city registration, insurance and your track record.

Does a finished build lower my construction loan rate?

Yes. On our example Lower Fees goes from 11.74% on a first build to 10.49% with one finished build. The Financed Interest Reserve is 9.50% until five finished builds, then 8.49%.

How much cash do I need as the builder?

With one finished build, $78,552 to close on Lower Fees and $144,385 in proof of funds. With the Financed Interest Reserve, $50,072 to close and $14,050 of the build before the first draw, $64,122 in all, because $18,050 inside the loan makes the interest payments.

Can I get an owner-builder loan for a house I will live in?

Not from us. We place business-purpose loans on houses built to sell or rent. For a home you will live in, ask a bank or credit union about a construction-to-permanent loan.

What credit score do I need?

650 and up. Stronger credit lowers the rate on a first build.

Do you pay a referral fee if I send you an investor?

Yes. We pay $500 to anyone who refers a real estate investor, realtors, wholesalers, contractors, other investors and lenders included, every time that investor closes a loan with us, for life. It comes out of our broker fee, so it never changes the investor’s terms. The details are on our referral program page.

Is Capital Kings the lender?

No. Capital Kings LLC is a broker, not a lender. We compare construction lenders from a network of 400+, and our broker fee is one labeled line on the term sheet before you sign.

Questions, worked out

The math on common questions

Who you’re working with

Founder & CEO

Micah Foster

Micah brokers fix and flip, DSCR and new construction loans for real estate investors across 37 states. He founded Capital Kings LLC to give investors a broker who compares the market on their behalf instead of pitching one lender’s product, and every term sheet is itemized down to the last fee.

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Keep reading

Want your exact numbers?

About five minutes to a real term sheet for your deal. No credit pull, every fee on the page.

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