Can somebody give me some options and ideas for getting finance as an owner building. I hear it can bit quick difficult to get unless the LVR is low. Feel free to prove me wrong.
The land is worth $190k (90%LVR). The house will cost about $250k to build. Finished value should be about $600-$650k. They have about $150k from the sale of the previous house to get started.
I would appreciate suggested strategies, interest rates and potential lenders.
It would be full doc loan. They will be renting for the duration of construction. Income approx $100k pa.
Thanks in advance,
GregGrreg
Yes financing as an owner builder can be not only be a little harder but also the number of hoops you need to jump through can often be numerous.
Rule of thumb is you will be limited to around 80% LVR although in saying that we have done 1 or 2 at 90% where GE have provided LMI. However in saying all this from the figures you have given 80% is not a problem.
One thing i would say is ensure that you have loan structured correctly. If it a PPOR then you will want to ensure that it has flexibility as also make sure than you are not ladened with fees and charges for each stage draw as well as ongoing fees at settlement.
As always if you want some more specifics feel free to email me and i would be happy to assist further.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Greg,
NAB will do owner builder finance at 80% LVR based on end value @ approx. 6.82%
If income is over 80K then no app fee and a rate of approx. 6.72%Also, there is low doc owner builder finance @ 80% LVR @ approx. 7.99% providing you take up the home building system at a cost of approx. $4.500 this can be incorporated into the loan. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Guys!
Thanks for the replies. A question on LVRs..
When you mention 80%.. Is that based on the completed market value of the house and the land or is it based on the actual construction costs of the house plus the land value.
They have borrowed from Westapc to buy the land, but may need to go elsewhere if it will be difficult to owner build. It is a metro postcode, which will help.
I’ll pass this thread to them and they can get in touch with you if they need more info.
Thanks,
GregHI Greg,
80% based on completed market value,NAB has approx. 6 progressive payment stages,
Preparation – Base – Frame – Lock up – Fixing – Completion.BTW, O.B is not for the faint hearted, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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