Browse Forums Home Finance 1 Jul 07, 2009 9:29 pm Wondering if someone can help me work out a "roundabouts" answer for me? I understand for OB the bank will lend you around 60-80%... Say we want to borrow $350k to build Im assuming the more we pay off the land, the better our chances are at obtaining the building loan. But how much "roundabouts" would we need to pay off the land in order to get an OB loan of $350k? Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: OB loan question 2Jul 07, 2009 9:45 pm Our bank advised that we would get 60% loan for OB. So, they will come and assess the house at lock-up; tell us what they think it is worth and then give us 60% of that. We need to use our own money to get to lock-up; which is ok as have savings for that. But yeh overall; the more you pay off your land loan, the better off (equity) you will be to take out a further loan. Every bank does things slightly differently but you should be alright if you pay some more to build up ur equity. Re: OB loan question 4Jul 22, 2009 9:50 pm Bam, proably best to see a few banks regarding this question. They all seem to look at things differently. Also be prepared for the worst. Unfortunatley owner builders are often put into the too hard basket. But have a plan (do your homework) and find out what is required and do what it required to get there. Re: OB loan question 5Jul 22, 2009 10:10 pm Thanks borg I might go to a few banks and see what their general criteria for OB loans are - I hadnt actually thought of approaching them and asking... dont know why : We did speak to our broker at the time of our land loan he gave us the 60%-80% figure. Ill start researching Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: OB loan question 6Jul 23, 2009 3:42 pm best you will get is 80% generaly 60%. Try a local building society or credit union smoetimes they will consider. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35321 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11915 |