Understanding the Build on Your Lot Process: A Step-by-Step Guide
Building a custom or semi-custom home on your own lot is an exciting opportunity to create a home that fits your vision and lifestyle. However, the process can seem overwhelming if you don’t know where to start. Here’s a step-by-step guide to help you understand how the Build on Your Lot (BOYL) process works.
Step 1: Know Your Budget
Before diving into design plans or searching for land, it’s essential to have a clear understanding of what you can afford. Your budget will influence everything—from the type of lot you purchase to the home design and finishes.
Assess your financial situation and determine how much you’re comfortable spending.
Consider additional costs such as site development, permits, and utilities.
If needed, speak with a financial expert to clarify your buying power.
Step 2: Pick Your Site or Pick a Plan (Or Do Both Concurrently)
Depending on your priorities, you may choose to select a lot first and then find a home design that fits, or pick a home plan and find land that accommodates it. In some cases, these steps happen simultaneously. Here’s what to consider:
If you pick the site first: You’ll need to ensure the lot is suitable for building (see my previous post on avoiding costly mistakes when purchasing land).
If you pick the plan first: Your chosen home design may have requirements that affect the type of lot you need, such as minimum lot size, setbacks, or foundation needs.
If you do both at the same time: You’ll have flexibility to match your home vision with the right property.
Step 3: Secure Financing
Financing a BOYL project is different from purchasing an existing home. You may need a combination of loans, including:
A land loan (if you’re purchasing a lot separately).
A construction loan to finance the build process.
A permanent mortgage that replaces the construction loan once the home is complete.
It’s important to work with a lender experienced in BOYL financing to understand your options and how to structure your loan effectively.
Step 4: Purchase Your Land
If you haven’t already secured a lot, now is the time to finalize your land purchase. Before closing on the property, ensure:
The site is buildable and meets zoning requirements.
Utility access, road frontage, and deed restrictions align with your needs.
You’ve conducted a site evaluation to estimate development costs.
Step 5: Engage in a Contract with Your Builder
Once your lot is secured, it’s time to formalize your builder partnership. This step includes:
Finalizing your home design and floor plan.
Reviewing and signing a builder agreement that outlines costs, timelines, and responsibilities.
Obtaining any necessary approvals or permits required for construction.
Step 6: Construction Loan and Final Financing
If you haven’t already secured a construction loan, now is the time. Your lender will review the builder contract and home plans before finalizing the loan. Construction loans are typically structured as short-term loans that disburse funds in stages as the home progresses.
Once construction is complete, the loan will convert into a traditional mortgage, or you’ll need to refinance into a permanent home loan.
Step 7: Start Construction!
With financing in place and plans finalized, your builder will break ground and begin construction. The timeline varies depending on the complexity of your home, site conditions, and permitting processes, but you can generally expect:
Site Preparation & Foundation Work
Framing & Structural Elements
Roofing, Windows, & Exterior Work
Plumbing, Electrical, & HVAC Installation
Interior Finishes & Final Touches
Final Walkthrough & Move-In
Ready to Start Your B-O-Y-L Journey? Let’s Talk.
Navigating the Build on Your Lot process requires careful planning and the right guidance. Whether you’re just exploring your options or ready to take the next step, I’m here to help you make informed decisions and connect you with trusted professionals to ensure a smooth and successful build.
Let’s build your dream home together—contact me today to get started!
