Get matched with top custom home builders in Ottertail, MN

Yes, you can finance new construction, though the process often requires a different type of loan than one for an existing property. There are several financing options available:

• Construction-to-Permanent Loan: This is a common option where a single loan covers the building costs and then converts into a traditional mortgage once construction is complete and you move in.

• Construction Loan (Stand-Alone): This type of loan provides funding only for the duration of the construction project. Once the house is built, you will need to pay the loan in full, typically by securing a separate, standard mortgage.

• Builder Financing: Some custom homebuilders offer their own financing options, which may only require a down payment to begin the building process.

• Bridge Loan: This can be a useful short-term loan to fund your new construction while you are in the process of selling your old home.

• Home Equity Options: If you are building a second home, you might be able to use a home equity line of credit (HELOC) or a cash-out refinance on your current property.

It's also important to be aware that some lenders may have restrictions on financing for DIY house builds, so be sure to verify that you can secure financing before starting your project.

Yes, a home builder or contractor should have the proper licensing and insurance. Licensing requirements vary by state and municipality, but most states mandate that a builder holds at least a general contractor’s license. For specialized work such as plumbing, electrical, roofing, or sewage systems, individual licenses may be required, in which case the builder may subcontract the work. You can use Angi’s state licensing tool to review your local guidelines and confirm a builder's credentials. As you browse professionals, you can also look for the “Angi Certified” badge. This indicates the business meets our certification standards, which include passing a criminal background check, holding applicable state and local licenses, and maintaining an average rating of 3.0 or better.

The early stages of building a house are harder than the later stages; laying the foundation and framing the house are two of the most challenging steps. However, it varies for everyone. Some people have difficulty installing HVAC, plumbing, and electricity, while others find it harder to plan the house and secure the necessary permits. 

Modular homes last an average of between 50 and 75 years, and high-quality modular homes can last for 100 years with proper maintenance. For comparison, a standard home lasts 50 to 100 years and can push to 150 or longer with good maintenance. Modular homes provide better long-term value in that they are significantly more affordable and can last almost as long, but some buyers are wary of modular home longevity, so the actual value if you sell could be lower.