Resources
Guides for building your own home.
Straight answers to the money questions that come up in every custom build, from the first budget to the last draw.
Planning guides
Loan and draw basics
Key terms
Three terms that come up in every build budget.
Contingency
A contingency reserve is money set aside to cover cost increases that weren't in the original plan. A common rule of thumb is 10–15% of the base construction cost. Skipping contingency doesn't mean surprises won't happen — it means there's no plan for when they do. The build cost calculator includes it as a separate line so you can see what the full honest total looks like before any funding decisions get made.
Soft costs
Soft costs are the expenses that are not physically part of the building itself: permits, architectural drawings, engineering reports, land surveys, inspections, and loan origination fees. They typically add 8–12% to the base construction cost and are often the first thing people undercount. Getting these in the estimate early prevents the funding plan from being built around a number that is already too low.
Debt-to-income ratio (DTI)
DTI is the share of your gross monthly income going toward debt payments. Construction lenders typically require a DTI of 45% or lower during the build. The more important number when you build is the finished-home DTI — what the permanent mortgage payment does to that ratio once construction is complete and the loan converts. The affordability calculator shows where yours lands.
Want to run your own numbers?
The free calculators work out your build cost, loan interest and finished payment in about a minute.