PLAIN ANSWERIt may shift official responsibility to you or bypass contractor eligibility. Read the owner-builder affidavit before agreeing.Local rules vary. The linked official examples support the workflow, not a nationwide yes/no answer.
A safe way to handle it
1
Ask why the contractor will not be permit holder.
2
Verify license and local registration independently.
3
Do not sign an owner affidavit that misstates who supervises or performs the work.