Browse Forums Home Finance 1 May 16, 2013 1:01 pm Can someone help with advice? We have now got our unconditional approval for our home loan. We are building but land unregistered until August. Lenders will loan 97% incl mortgage insurance for land and 100% for construction. We have 5% deposit of total cost. My question is: Land registers in August and settlement occurs where the land needs to be paid. However since the lenders pay 95% of land price, we need to come up with the rest. However we need to give money to the builder to accept quotes in the meantime so we wont be able to make up the whole land payment. In short, we have too much for the construction (about 14k) & not enough for the land (about 15k shortfall). Did I make sense? Is there anyway around this? Re: Can anyone help a FHO please 2May 16, 2013 9:57 pm Hi Rubymc It appears you are a little misinformed. Lenders will lend you 95% + LMI for the land however this is the same when it comes to construction. Therefore you will be expected to inject 5% as a deposit on the land and a further 5% on the builder's contract price. If you are short of funds then you may need to approach a lender that can add the full LMI not the loan (not just capped to 97%) The other option is to settle on the land once its registered and hold off on construction until you can save a further 5% Hope it all works out!! Re: Can anyone help a FHO please 4May 24, 2013 7:39 pm Hey Aaron_C, Many banks now will not have the genuine savings criteria when it comes to builds. The flavour of the year is "low deposit homeloans" which is the reason my partner and I have been able to secure land and build and get approved on a $5000 deposit for land and $1500 for build . Rubymc, congrats in your approval! I would agree with the advice, stall the build to save the $ otherwise you will be constantly chasing your tail! Or...see if your builder has low deposit options. Good luck Build Permit-17/12/13 Earthworks-13/1/14 Slab-30/1/14 Frame-10/2/14 Lock Up-7/3/14 Fixing Stage Complete-20/3/14 New Home Presentation-6/5/14 Moved in 17/5/14! Blog: http://dandesbuild.blogspot.com.au 1 365 Thankyou so much 😀 I've decided on White on white for doors and trims, White on white 50% on ceiling and Mt buller for walls. Fingers crossed it will look OK 😀 2 7158 i had the my concreters concrete right up to the fence. I have pits all along my path, so the water tends to drain away from the house and into the pits. There's only one… 7 12773 |