Fuss Free Finance: Low Doc Funds - Building and Construction

Land and Construction Funds - (Low Doc Funds)

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' 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.

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 purchase and see if a Solicitors Loan applies to you.