Browse Forums Home Finance 1 Sep 09, 2015 9:49 am Hello! I am hoping for some advice from experienced owner builders. Our plans are in council to extend our existing house and we contacted our bank about finance and have become a bit disheartened (wish to go owner builder as husband is a carpenter of 20 years + we have a wealth of tradespeople friends we would like to assist with our job). Can anyone recommend a bank that is willing to lend to owner builders these days? Or should we be looking at a broker? Have any owner builder carpenters been in our situation in regards to finance and completed a speedy course to obtain their builders licence? If so, any recommendations? Could we get a builder friend to assist with ticking boxes to obtain finance? Any advice/ comments are appreciated! Thank you, Re: Finance Question for experienced owner builders 2Sep 09, 2015 10:04 am HI, I haven't owner built myself but have financed several. There are lenders who are more favourable towards owner builders and it comes down to your situation as to who is best - but lots of banks don't do it at all. You will need to be very thorough in your costings and devise stages to be paid, being mindful of keeping enough cash up your sleeve to complete the stage PRIOR to being paid, so cashflow management is critical. You will have to supply invoices and quotes prior and as you go along. The other question to answer from the bank's perspective is if you need your husbands income to service the loan - how does he work and build your home at the same time, I'm aware he will fit it in, just ensure you have a ready answer for the lender. The only other way around it is if your builder friends can do a proper building contract for you & complete the work with your selected trades. Hope all goes well. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Finance Question for experienced owner builders 4Sep 09, 2015 11:36 am For what purpose? I don't think you'd find a lender who would accept a guarantee with owner builder. It comes back to having the equity or the cash to fund the build stages and not get stuck, and addressing the income. the lender will not lend more than 80% of the current valuation, or, 80% of the current valuation plus the hard costs (depending on lender, some are 60% even). Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 54865 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 22562 |