Building a House on a Budget? Contractor Financing and These Other Money-Savers Can Help

Many home buyers seem to think that custom homes are only for the ultra-wealthy. But in truth, most people can build the house of their dreams even if they are on a tight budget. Those who take time to research their options and learn money-saving tips can end up paying the same amount or even less than they might have paid to buy an existing home. And they’ll get far more enjoyment out of the space!

Keep reading to learn more about building your dream home on a budget.

1. Lower Your Square Footage

Though square footage is a status marker for some, there are many perks of a smaller home. You’ll have less space to clean and maintain, lower energy bills, and won’t have any wasted space. A smaller home will keep you more mindful about what you purchase so you won’t have unnecessary belongings build up over time. A smaller home can feel just as comfortable as a larger home if you follow these tips:

  • Consider an open floor plan to create a feeling of spaciousness.
  • Make living areas bigger than bedrooms if you don’t plan to spend time there.
  • Only add rooms you’ll use. Do you have a need for an office or formal dining area? If not, skip it.

2. Know When to Splurge and When to Save

When you’re building a house on a budget, you won’t be able to choose top-of-the-line finishes for every aspect of your home. Here’s how to decide where to splurge and where to save:

  • Make a list of the features you absolutely can’t live without.
  • Explore options on how to make those elements more affordable. For example, install a wood-like tile instead of authentic hardwood.
  • Decide on things that don’t matter as much to you, and go with budget friendly-options.
  • Ask the builder for other tips on how to cut costs without compromising the architectural integrity of the home.

3. Add Character to a Basic Plan

Basic home plans give you a more affordable baseline than decked-out custom homes. You can save a big wad of money by starting with a basic home plan and then adding character with antique finishes or fun paint colors. Look for DIY projects you could easily accomplish to bring more personality to a basic plan.

4. Consider Future Upgrades

When you’re building a custom home, you can always add on or do home renovations later. Do you dream of having a wrap-around porch, but can’t squeeze it into your budget? Simply choose a plan and build on a lot that will allow you to add it later. Likewise, if you think you’ll want to add rooms or a second story in the future, just choose a plan that will easily accommodate those changes.

Learn Your Contractor Financing Options

Contractor financing programs are a convenient, affordable way to get the home of your dreams. Educate yourself on the best ways to finance your home project by learning more about consumer financing for contractors. You’ll be glad you took the time to invest in a home you truly love!