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1.
Standard Draw Down
Low-doc
lenders do not usually approve loans for the construction
of commercial/industrial properties - Click
here if you have a commercial project to see how a Solicitors
Loan applies to you - but advances for residential
construction projects through Fuss Free Finance
are available subject to sighting the usual planning/building
permits, stamped plans and fixed price building contracts.
Advances are to a maximum of 80% of end valuation/gross realisation
with progress payments/draw downs available in the usual way
- but based on the usual 'cost to complete' basis.
* Loans may be converted from 'interest
only' under this particular type of land funding during the construction period to Principal and Interest,
fixed or variable rate loans at completion. Owner builders
are ineligible for this type of loan -
Click here if you are an Owner Builder and see how Solicitors
Loan applies to you. In addition if multiple
dwellings are being constructed each dwelling constructed
must have it's own separate title.
See
Rate page for current interest
rates and loan criteria and/or email the Loan
Inquiry Form for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable
fees and application forms.
2.
Joint Venture
As
an alternative to the standard x% of end value drawn down
funding Fuss Free Finance offers joint venture funding to
100% of hard and soft costs. Based on the Macquarie Bank model
(the bank takes up to 50% of the estimated profit and requires
'financials') our J/V partner only takes up to one third of
the estimated profit (gross realization less total debt) and
whilst wanting to be satisfied that the developer and builder
have the experience to complete the project taxation returns
are not required - a current tax assessment notice is required
but the lender does not care about what is on the assessment
(not return) as it is required for 'compliance' purposes
only ie. they will not deal with someone who has not lodged
returns for years (they are therefore acting illegally) and
may be the subject of taxation litigation in the middle of
the project! By being reimbursed for out of pocket expenses
(land and development costs etc.) and paying no interest payments
during the period, developers are able to go onto the next
project because their funds are not tied up during the project.
See
Rate page for current interest
rates and loan criteria and/or email the Loan
Inquiry Form for a full written indicative offer/quotation
which includes: approach, rate calculation, requirements and
applicable fees.
3.
Development Land
Prior
to beginning construction and approaching a construction
lender which requires stamped plans, permits, fixed price
building contract and sometimes pre-sales the land must be
obtained for land financing.
Fuss
Free Finance has access to Low Doc lenders who will lend to
80% of purchase price/valuation but almost all low-doc lenders
require you to commence building within twelve months.
Fuss Free Finance has access to solicitor's
funds who will advance funds against vacant development land
(usually to a maximum of 2/3rds of valuation) in order to
secure the land but prior to the commencement of construction
thus enabling time for relevant documentation to be obtained.
These funds are interest only and have a fixed rates
for a one (1) year term with the right to rollover for extended
periods and/or of early repayment so developers can discharge
the facility once the stamped plans, permits, fixed price
building contract and sometimes pre-sales are obtained
and approach a construction lender. Click
here if you need assist in vacant land financing and see if
a Solicitors Loan applies to you.
See
Rate page for
current interest rates and loan criteria and/or email the
Loan Inquiry Form
for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable
fees, application forms and a procedure page outlining steps
to settlement.
* Please note that at the current time due to the Global Financial Crisis 'fallout' the above loan to value ratios and the ability to fund development and construction projects is extremely limited. Accordingly we would advise that you contact us on 1300 131 876 in order to asses your particular proposal.
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