One of the issues with building your own house, is getting a construction loan. Initially, we had planned to start construction and use a home equity line of credit on the home we were living in to finance building our home. Once we were close to finishing, we would sell our home and finance the rest with personal and credit loans. The economy started tanking and we were nervous that we would not be able to sell our home and would be stuck with two house payments. So we put our home up for sale and we were blessed that it sold in two weeks. A few months later, we started to build with the thought that once we had used half of our savings, we would start hunting for a construction to permanent loan. I was unaware that it is better to get a construction loan before you even start to build. A local bank and farm credit union was willing to work with us but there was going to be a lot of paper work and hoops to jump though. As far as lenders are concerned it is better to lend on a piece of raw land than it is to lend on a half finished home. We ended up borrowing the remaining amount of money needed from family and started working on securing permanent financing once the construction was completed. Before you start building your own home, make sure you have a game plan to finance your project. It is best to already have your financing lined up before you even start. It can be stressful having a half finished home and trying to secure financing at the same time.