Being Your Own General Contractor

By the Home Building Cost Calculator team · Updated November 2026

Being your own general contractor (an owner-builder) can save the 10% to 20% a builder charges for overhead and profit, but it is slower and riskier: owner-built homes took an average of 15.1 months from start to completion in 2024, versus about 7.6 months for all single-family homes. Owner-builder construction loans are rare and usually need 25% to 30% down.

How much can you save as an owner-builder?

A general contractor typically charges 10% to 20% of construction cost. On a $332,000 build (2,000 sq ft at the US median), that is about $33,000 to $66,000. Savings shrink if you pay more for subcontractors, materials, mistakes or a longer construction loan.

What does an owner-builder do?

  • Gets permits and schedules inspections
  • Hires, schedules and pays every subcontractor
  • Orders materials and manages deliveries
  • Carries builder’s risk insurance and checks subcontractors’ insurance
  • Keeps the job on schedule and on budget
  • Collects lien waivers so subs and suppliers cannot place a lien on the house

Pros and cons

Pros: potential savings, full control of choices and subcontractors.

Cons: much longer build time, harder financing, liability for job-site safety, and the risk of costly mistakes if you are not experienced in construction.

Can you get a loan as an owner-builder?

Some lenders offer owner-builder construction loans, usually to borrowers with construction experience, and often with 25% to 30% down. FHA, VA and USDA construction loans generally require a licensed builder.

Frequently asked questions

Do I need a license to build my own house?

Many states allow owner-builders to build their own home with permits, but rules on doing your own electrical and plumbing work vary. Check your state and county.

Is it worth being your own general contractor?

It can be if you have construction experience, time and cash reserves. For most first-time builders, hiring a builder is safer.

More on the building process

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