Hey all, i will be building a unit in the near future and wanted to know what my optons were in regards to owner builder finance?
I have heard it is more difficult to get a lend as an owner builder and that the banks want a WHOLE lot of infomation on the building process if the lend is over 50k.
any other infomation on owner builder finance would be great
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
Hi PP
Yes many lenders simply won’t provide finance to Owner Builders however in saying that there is stick many lenders who do.
Traditionally you will be limited to 80% LVR although i do have 1 lender who claims they go to 90% LVR on a case by case basis.
In saying all this if you have existing security to offer as addition collateral with equity you should be able to arrange 100% plus costs.
Email us if you need a few lenders.
Cheers Richard
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Some will factor in a 20% over run costs also.
This means that you will need to have the 20% deposit + another 20% in equity or deposit to allow for over runs.Home must be completed within a 12 month time frame also othewise the loan can be crystalised (forced to convert to P&I and stop construction payments).
This can be a problem if you are not finished!David
Where there is a will there is a way!
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