Back in July 2009 we made inquiries through our Mortgage Broker, about a Owner Builder Loan. He suggested St G***ge Bank and forwarded an email from there state manager outling there criteria which we easily met. Since then we have had nothing but headaches and still dont have an answer from them regarding our application.
We had 50% equity, they require at least 40%. There valuations of our house plan and land came in stupidly low, but we still had the 40% required despite their low valuations. Based on the valuation they were prepared to lend $10000 less that we required, which was no big deal to come up with an extra $10000.
Then they said we didn`t have the income to service the loan?????? totally rediculous as I have rellies who have borrowed more than we are asking for on less income then us. We complained to our Mortgage Brocker, who said they had set our servicability at a higher rate than normal.(1.3% I think) anyway to combat this I went fulltime at work.
We though we must be home and hose now, but no, the bank then wanted us to show we had the additional $10000 they werent prepared to lend us. We had the extra money in the bank which we provided evidence of. Still no approval.
The latest hurdle is they are claiming Owner Builders take to long to build, therefore we will not be able to service our homeloan and pay our rent. Which is totally wrong, as we are saving $600 weekly as well as paying $500 rent everyweek.
We gave them proof of this 2wks ago, and are still waiting for an answer.
Meanwhile we were so confident that we would get approval, as was our mortgage Broker that we have already outlayed $80000 and commenced our build, by the end of this month we will be ready to put the roof on.
We have enough funds to get the house to lockup......but what then ????our house will just sit there until we can get someone to loan us the funds. Our land in with C*B*A, who have said the will not loan for OBs. We are reluctant to contact them as they have no idea we have started building on the land.
I have no idea what to do now, is it worth a call to the State Manger of St G?, Mortgage Broker says no, and does no know what to suggest if we get declined. Is there anybody who specialises in OB Loans.
It will takes us years to get this house built, if we have to save the funds due to not getting a loan. I am seriously stressed out, and dont know what to do. ANY Advise Welcome.