This video will provide insight into how you should consider the End Market value for an Owner Builder Home Loan when making an application for a mortgage with us. Many lenders use the ‘Net cost of Land and Materials’ approach when valuing (appraising if you are in the US) to determine the amount of money they are willing to advance for an Owner builder Loan. This often means you need to contribute much more to your build and can put your dreams of Owner Building out of reach. Intellichoice works closely with the Lender and Valuers to submit your project in the best possible light – something you cannot be sure of with inexperienced brokers or bankers in this niche area of lending. Watch the video for a better understanding of End Market Value for Owner Builders and call us to clarify or continue the conversation.
End Market Value is really critical to an owner builder because that’s how the lender actually calculates what they’ll lend you for your owner builder projects. So for example, if I have a property and I know that when I’ve completed it, the value of that property is going to be $500,000. Then at 60%, the lender is prepared to lend me $300,000 for my land and my construct.
Now quite often when I speak to people they’re not really sure as to what the inter market value of their property will be, so we try to suggest to them to go back to talk to the real estate agent who they’ve purchased the land through or to do some realestate.com searching, because understanding that at the start of your process, can really really help you and provide confidence that you’ll be able to get money that you need to actually construct.