Hi,
I'm in need of a sounding board and some feedback
We are trying to build a house. My husband is a licenced builder and for our location can build a house for $250K (including land purchase).
We have dealt with the ANZ who have been great - we have been approved for the loan. That was relatively easy. However it was approved on one condition - my husband doesn't build it! They seem to be happier to lend an extra $100K for someone else to build it than take the (so-called) risk of him building it. (Builders building their own home = high risk (apparently). The reason we want to build at all is because we can do it so cheaply. My brother-in-law is also a builder but we couldn't use his license because he has the same surname (meaning not arms-length) and so that's a deal breaker for the banks.
The problem is we don't have any collateral in other properties and our families aren't in a position to be guarantors for us. We have considered getting a loan for $150K somehow (perhaps business loan) (and get a loan on 80% for the land) and then re-financing after the house is finished. But we are yet to see if the bank would actually go for this.
Anyone have any ideas? Is it worth trying other banks or a broker to try and find someone that will let us build? Will anyone let us build or will it be the same across the board? Our financials aren't the thing that's causing the problem, it's so frustrating to be approved for the money but not to be able to get our hands on it.
Anyone had a similar experience?
Any feedback would be greatly appreciated.