The Scottish Government has decided to roll out the scheme following a successful pilot in the Highlands.
It believes this pot will help people in an area where it is traditionally difficult to secure funds and to enable them to tailor homes to their needs.
The Highland Small Communities Housing Trust will administer the fund on behalf of the Scottish Government.
"The SBLF sitting alongside the many other positive Scottish Government initiatives such as the Rural and Islands Housing Funds, Scottish Land Fund, and other initiatives that HSCHT can facilitate, provide communities with the tools to ensure they remain sustainable by providing a range of housing options," says Ronnie MacRae, the Trust's chief executive.
"While not yet back to where it was, self/custom-build is again a growing market and we're excited to be working with Scottish Government and a range of partners to ensure that this remains the case and self/custom-build goes from strength to strength as a housing option."