Couple Built Their Own Home, Mortgage Under $900

Maddy and Drew Olson built their home themselves to keep costs down. By holding their budget to $209,000, they locked in a mortgage payment below $900 a month.

Maddy Olson had never laid a tile before she started on the two bathrooms. That did not stop her. She learned as she went, cutting and setting each piece by hand. Drew handled the framing and drywall. Neither had construction experience when they started.

The couple bought a plot of land in a rural area where building codes were less restrictive. They designed a simple floor plan – no wasted square footage, no vaulted ceilings, no custom fixtures. The goal was a finished house with a payment they could cover on one income.

They acted as their own general contractor, subbing out only the foundation, the roof, and the electrical work. Everything else – plumbing, insulation, flooring, cabinets, paint – they did themselves. The project took 18 months of evenings and weekends.

"There were weeks where we didn't touch the house at all," Maddy said. "Other weeks we were there every night until midnight."

The final cost came in at $209,000. With a 20% down payment and a 30-year fixed-rate mortgage at 6.5%, their monthly payment is $895. That includes taxes and insurance.

Comparable new construction in their area runs $350,000 to $400,000. A builder would have charged at least $180 per square foot. The Olsons paid $110.

"We don't have a lot of storage, and the kitchen is small," Maddy said. "But we own it. There is no bank breathing down our necks."

The couple has no plans to sell. They are already planning the next project: a detached workshop Drew will build himself next spring.