What Are the Construction Loan Requirements?
All loans have a specific set of requirements that applicants must satisfy. Here we discuss the construction loan requirements for construction projects.
Building Contract. Some owner-builders decide to build the home themselves. The majority opt to hire professional construction teams to complete the project. In either case, lenders require documentation that outlines who will build the property. The same goes for investors.
Building Plans. Lenders must understand the scope of the project. Some owner-builders decide to build their dream home. Lenders want to know what that entails. For example, they want to know the number of rooms and extras. Building a property is an opportunity to add a swimming pool. For investors, lenders must know the number of units the multi-unit structure will have.
Timeline. Construction projects take place in five stages. Therefore, lenders want to know how the loan applicant sees them rolling out.
Proof of Land Ownership. To improve your chances of obtaining the most favourable loan terms, lenders require proof of land ownership. It becomes dicey when the applicant does not own the land outright. Thus, provide information about the land.
Permits. Although most construction projects reach completion in Australia, it helps if applicants have already obtained the necessary permits from the appropriate government agencies.
Mortgage House finances construction loans for owner-builders and investors. We also help owner-builders roll the loan into a mortgage once the project is complete. Check out our Mortgage House home loan calculator with no strings attached.
Construction Loan Requirements Conclusion
The construction loan requirements are standard for loans. After the basics, applicants can expect to satisfy additional ones specific to the project. To discuss them in more detail, contact our Mortgage House loan specialists today.