alternate funding ideas

The builder I work for has a client who had great dificulty getting a loan. He has about 30 credit enquiries made in his name (he says it wasnt him) when he first came to australia.

He got the deal done, much to my surprise at 80% and settled the land, and has approval for the construction. However since that time he has spent part of the contribution he needed to make and is now short about $15k.

The builder now locks up the house until he has the funds, charging penalties on the amount outstanding, and leaving the half completed house to the weather....

with that amount of credit enquiry its dificult to pass any lenders credit score, credit cards, personal loans etc.

Anyone got any other ideas for short term funding?

Apart from the multiple enquiries his lending capacity and financial position is sound.
 
The builder I work for has a client who had great dificulty getting a loan. He has about 30 credit enquiries made in his name (he says it wasnt him) when he first came to australia.
.

Im thinking Id get the bulk of the CRAA sorted real quick.

What sort of enquiries and from whom ?

looks dodgy, but with the 15 k spent on other things that were committed youd think there may be some other issues that arent 100 % right maybe

ta

rolf
 
Im thinking Id get the bulk of the CRAA sorted real quick.

What sort of enquiries and from whom ?

looks dodgy, but with the 15 k spent on other things that were committed youd think there may be some other issues that arent 100 % right maybe

ta

rolf

My thoughts exactly.
Secondly, it seems rather strange that the lender was advancing funds prior to the client using their own funds that were required to complete. usually he'd pay his portion 1st and the lender advancing funds only when the loan amount was sufficient to complete construction.
 
Sounds like he used his funds first but is short $15k that he was supposed to have used hence the bank funding not being made available.

Can't think of any easy solutions. Perhaps the builder could lend it to him?
 
Gee your frd is def stuck!
1. can't refinance - as half built property
2. Can't go over 80% LVR because of CRRA

ALl he can do is do it the old fashion way...save up for that 15k....

Regards
Michael
 
There are a couple of lenders who could consider 85% with a partially complete house however they would want to see 3 - 6 months bank statements to make sure that none of these enquiries that he has actually did go through. They would look for undisclosed debts being paid for from his bank account.

Partially complete dwellings are not within policy for the vast majority of lenders.
 
Tobe,

I know a broker who is able to help your friend in this situation by providing either a) a second mortgage on the development or b) refinancing the entire development.

Done it before for a client who was facing exactly the same situation.
 
The builder I work for has a client who had great dificulty getting a loan. He has about 30 credit enquiries made in his name (he says it wasnt him) when he first came to australia.

He got the deal done, much to my surprise at 80% and settled the land, and has approval for the construction. However since that time he has spent part of the contribution he needed to make and is now short about $15k.

The builder now locks up the house until he has the funds, charging penalties on the amount outstanding, and leaving the half completed house to the weather....

with that amount of credit enquiry its dificult to pass any lenders credit score, credit cards, personal loans etc.

Anyone got any other ideas for short term funding?

Apart from the multiple enquiries his lending capacity and financial position is sound.

30 is a lot!!!
 
Thanks for the responses,
Bradsdad,
he paid his portion of the deposit for the land settlement, the bank hasnt started funding the construction yet, as they need to see he has made his contribution.
Rolf,
indeed, thats the advice Ive given him (to clear up the credit report). He did engage a company who got him to fill out some forms, however apparently Veda didnt remove the credit enquiries as he couldnt prove he didnt make them? I agree something doesnt sound right, but meeting the guy, he does seem legit. He sent the money back to india after a family emergency, he didnt spend it at harvey norman.

HLE and aron,
I agree it is technically possible to refinance the homeloan to a lender who doesnt credit score, however the chances of them getting a reasonable val on construction, and being able to go over 80% is a stretch...
He is also a fairly new immigrant, FHB etc, he isnt going to credit score fantastically over and above the credit enquiries. Also, how do you get around the requirement for 3 or 6 months loan statements for a refi when the land loan has only been drawn a couple of months?

Oddly enough he would have a better chance with a non conformer or widebay if he had a default...

I think he just has to put some effort into clearing his credit file and then getting a PL or credit card. Trouble is that will take some time.
 
Thanks for the responses,
Bradsdad,
he paid his portion of the deposit for the land settlement, the bank hasnt started funding the construction yet, as they need to see he has made his contribution.
Rolf,
indeed, thats the advice Ive given him (to clear up the credit report). He did engage a company who got him to fill out some forms, however apparently Veda didnt remove the credit enquiries as he couldnt prove he didnt make them? I agree something doesnt sound right, but meeting the guy, he does seem legit. He sent the money back to india after a family emergency, he didnt spend it at harvey norman.

HLE and aron,
I agree it is technically possible to refinance the homeloan to a lender who doesnt credit score, however the chances of them getting a reasonable val on construction, and being able to go over 80% is a stretch...
He is also a fairly new immigrant, FHB etc, he isnt going to credit score fantastically over and above the credit enquiries. Also, how do you get around the requirement for 3 or 6 months loan statements for a refi when the land loan has only been drawn a couple of months?

Oddly enough he would have a better chance with a non conformer or widebay if he had a default...

I think he just has to put some effort into clearing his credit file and then getting a PL or credit card. Trouble is that will take some time.

Tobe - the lenders I am talking about are private funders - they don't go through the same 'scoring' or procedures as banks. They are far more flexible. You can PM me for more details if you would like.
 
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