Owner Builder Loans
A home building loan can be used to build a new house or make significant renovations and improvements to your existing house. This differs from a traditional home loan in that the valuation will be done based on what the house will be worth when it is finished rather than its current value. When you apply for a construction home loan you will need a copy of the building contract, plans of the construction and details of fixtures and fittings for this assessment to be done. It is ideal that all costs are included as part of a single fixed price building contract. If you have minor quotes such as carpets, pool or landscaping that you want to arrange yourself then you will have to pay these costs out of your own pocket if they are not part of the contract. This will increase the deposit you need. Here at Selectabroker we are the most knowledgeable team when it comes to owner builder loans and home building loans so trust us to point you in the right direction.
Growing through New Home building loans
The significant difference between new construction loans and normal loans is that you only pay interest payments on the loan amount drawn down as you progress through the construction process. If you pay cash for your land and then arrange a construction contract with your builder, they will ask for a progress payment upon the completion of a specific stage of the project. This invoice is sent to the lender and they will pay the builder. The lender will then send you an interest payment request. Various construction loans include house and land packages where the land loan is drawn and progress payments are made on construction. Some of these packages only require full payment upon completion, which can save thousands, as the builder incurs the interest cost on the construction. For owner builder loans or home building loans made easy, call or email us now to get started.