100% agree. Beyond that too, it is very difficult (relative to FHA or even Conventional mortgage) to get approved for a construction loan, and in a lot of cases

100% agree. Beyond that too, it is very difficult (relative to FHA or even Conventional mortgage) to get approved for a construction loan, and in a lot of cases you have to close on your loan twice, the extra fees and higher interest rates eating into your potential savings. There's also no way you're going to get that loan without a general contractor overseeing the entire operation, who will take 20% off the top alone, which don't get me wrong, is fair if you need it. If you want to do anything DIY to save cash and hire inspectors to catch your mistakes + professionals to do risky/difficult stuff (electric, plumbing, HVAC), you can't do it with the bank's money. Also, it is pretty common for county codes to require each home to be a minimum 1000 sqft (at least in FL and MI). Even if we don't want to allow tiny homes of sub-500 sqft to gasp potentially lower the value of my home by giving someone else a place to live, the 700-900 sqft range is still very nice for a lot of people.