Browse Forums General Discussion 1 Oct 02, 2009 4:17 pm My partner and I have just purchased land in the Reflections estate in Tarneit Victoria. We are looking at building early 2010, but we are trying to go Owner Builder as my father in law is going to do all the work for us and save us over $100000 (he is a professional builder). The problem is, we can’t find anyone that will give us a loan, if we want a loan, we have to go through a builder like Porter Davis and the like. The reason it is so much harder, Owner builder is classed as ‘high risk’ and most banks won’t lend more than 60% of the total cost to build, for a normal loan, they will lend 90%, despite the loan being $120000 more than if we go owner builder. Does anyone have any tips on how we might be able to get an owner builder loan? Current status: Busy making the house our home Built PD Francis 29 on our 576m2 block at Reflections in Tarneit Reflections Estate Thread Our Build Thread Re: Owner Builder 2Oct 02, 2009 4:37 pm Most of the big 4 will never lend more then 60% to owner builders. If your FIL is a professional builder, does he have his own company? If he does he can submit a contract to you then the Bank will view it like a normal build. However if there is no company involved then the lender will more then likely continue to treat it like an owner builder situation. When I was a lender I had two separate times that builders came to see me to do a build for themselves. The first time we had plenty of equity in other properties so I could give him a line of credit to do the build outright. The second was a builder with his own company. Bank still treated it as an owner builder scenario and wouldn't do more then a 60% lend as well as all the normal strict rules to do with OB loans. I can imagine that today with the stricter lending criteria it would be even harder for a lender to do an OB loan without any of the normal conditions. Do you have any family who can let you use equity in other property? Some things are worth waiting for. Re: Owner Builder 3Oct 03, 2009 1:46 am If your FIL is a registered builder he can draw up the contract for the loan. You don't need to use a volume builder. We are doing exactly the same thing with my FIL in Werribee early next year. Re: Owner Builder 4Oct 03, 2009 2:17 am Do you own the land outright? If so, Commonwealth offer a loan whereby you can borrow against the land to build, no matter what your circumstances. JB Hi VK, I am now retired however I have stood beside over 300 owner builders in the past 18 years that have successfully built their own homes. First of all a building… 10 22666 Hi all. Anyone know when the $11,000 limit was set in legislation for renovations in QLD? Ive been renovating for 5 years now and this was the limit back then. As we know,… 0 4243 |