Owner builder construction loan features include unlimited draws, no application or draw fees, no prepayment penalties and all draws are mailed directly back to you. Other pluses for an owner builder construction loan are that you can hire your favorite subcontractors and tradespeople, you can purchase materials from your favorite suppliers and you can use your own labor. Owner builder construction loans mean you don't have a contractor. You pay interest monthly only on the outstanding balance and after the completion of the construction, you are free to refinance with another lender of your choice.