25 Nov 2021

What Are the Qualifications for a Construction Loan?

Like other loan products, it’s important to understand the construction loan qualifications. Every home loan has a purpose and target profile. It’s not different for construction loans.

Here we look at the Mortgage House construction loan qualifications. 

Proof of ID

Before signing a contract, the issuer must check the applicant’s identity. In terms of financing, a thorough financial background check takes place too. Thus, the loan specialists must ensure that they have permission and are looking at the correct records.

Income

All lenders must ensure that the applicant can pay back the debt. 

Expenses

A high-income bracket is great. However, if the expenses match the income, it lowers the applicant’s liquid income. Lenders look for income that is three times the amount of the monthly repayment. 

Assets

For construction loans, assets become more important. They double as security against the loan. Other properties and land improve the applicant’s borrowing capacity, especially for construction loans.

Liabilities

If the applicant has other debt, lenders want to know if it’s in good standing. Everything goes back to the applicant’s ability to repay the loan. 

Mortgage House has a longer checklist. Our loan specialists discuss the details. It helps the applicant understand their financial situation before applying. Experienced investors have a different set of qualifications that make the process run smoother. Loan specialists discuss those details too. We also offer business loans to clients.

Construction Loan Qualifications Conclusion

Mortgage House loan specialists walk clients through the construction loan qualifications. They also answer questions and offer alternative products. For more information, contact our team.

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