IP Finance

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From: Wayne Addison


We are looking for some financing for our first IP. We are looking for a 100% IO loan and to use equity in our own home as collateral. The catch is... we are owner building our home (currently at lock up) and are finding most banks will only value our property at land value because it is still under construction.

Does anyone know a financier who may be able to help?

Thanks,
Wayne.

 

[Lissy]

Reply: 1
From: Felicity W.


Hi Wayne
I can tell you now, having been down the owner builder route, banks don't like you very much! You may be able to get a better valuation than land value once you reach lockup, but it's not likely to be anywhere near the final value of the house. We never did find anyone who would value our house at full value until it was complete.
I hope someone else can be more helpful!
Keep smiling
Felicity