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Building a home is generally less expensive than purchasing an existing one. With the national average to buy an existing home around $393,500, building a home offers a moderate cost-saving advantage. Your actual savings depend on the degree of customization, land costs, and your area.

A construction loan is one of the most common financing options available for building a home. You’ll typically need a high credit score and make a down payment when you apply for the loan. Other alternatives include federal construction loans for active and retired service members, hard money loans, and construction loans backed by the Federal Housing Administration.

Building a house takes about seven months, according to the most recent data from the U.S. Census Bureau’s Survey of Construction. Consider the demand for housing, labor shortages, and supply-chain issues, and allow a few extra months for delays and other unforeseen circumstances when building a house.