Browse Forums Home Finance Re: 100% Construction Loan 8Oct 10, 2008 12:51 pm Blog - http://clageonewhouse.blogspot.com/ Building Thread - viewtopic.php?f=31&t=10886&hilit=milan I am in, with my husband and my beautiful bunny Re: 100% Construction Loan 15Oct 24, 2008 8:26 pm Land got settled recently. I told CBA that I will be building soon and they have ordered a valuation of the Land + House. Land valuation came up $9K higher than the previous one and they also gave 100% value to the construction costs. They're giving me 95% LVR which means I just need to come up with $6K to cover the shortfall, plus I'll get the FHOG in the latter stages.
I need to pay the 5% deposit being asked by the builder though in order for site start to happen while the bank organizes the release of funds. They asked me to keep the receipt and they'll refund me this later. Can't wait to have a definite site start date. No deposit house and land loan 16Mar 06, 2009 3:25 pm 100% Construction loans are no longer available after big changes in lending policy again last week.
You may still qualify for a No Deposit home loan for house and land package to have your perfect home rather than buying an established property. To apply for the No Deposit home loan you will need; *Contract for Sale of Land *A fixed price contract from a licensed builder for the construction *Council approved plans and specifications of the proposed house *A copy of builders current insurance policies On presentation of the above, the building project is valued before loan approval and monitored through its stages by the lender; *Tentative value of your completed project is estimated *Lender’s valuer monitors building progress and confirms the completion of each construction milestone, while the lender progressively pays (progress payments) the builders invoiced claims *Receiving builder’s invoices along with a request for funds at each major stage, your lender manages the financing of the project in stages. Re: 100% Construction Loan 17Mar 06, 2009 3:28 pm What is the difference between 100% construciton loan and no deposit home loan? Re: 100% Construction Loan 19Mar 06, 2009 3:38 pm Let me qualify that answer, thee is no difference between No deposit and 100%.
Of course there is a difference between Construction loan and home loan. Construction loan is a specific type of home loan. (Maybe I didnt need to spell that out?) Re: 100% Construction Loan 20Mar 06, 2009 4:12 pm gpierce CBA told me that during construction they will inspect and do valuations at all the payment stages before handing over the $$ to the builder. In my case, we already own the land, and the loan won't be more than the land alone is worth, so in our case they WILL loan us what we need, but they'll still do a valuation. Greg Not sure if CBA inspected the house at each stage but from Slab to Fixing Stages they were able to release the funds in 3-4 working days. I've been told that for the final stage payment, they will need to actually go onsite and check that everything is in order before releasing the final cheque. 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 18895 That sucks! Hope it all works out. Good to move away from steel anyway for all your reasons, but it's also thermally poor. 16 17724 As is per usual for many of the past failed RWH regulations, it is probably traceable to a bureaucrat who's ego overrode the need to seek the appropriate expert… 1 247 |