Darin from Intellichoice talks of the process for Owner-Builder Loans-and why a specialist is needed
This video will provide insight into why specialist knowledge is needed for setting up and using Owner-Builder Loans. When choosing people to help with these types of projects it is absolutely critical that the broker or lender has an in-depth understanding of all the nuances of these loan types. Many things can change during the Owner builder construction process and if the people advising don’t have completion experience with these loan types, there’s a risk the project will stall mid-way through. This is an unmitigated disaster as there are normally no lenders willing to help clients with half-finished owner-built home. When contemplating becoming an Owner-builder be sure to surround yourself with experienced people who can advise during the course of your build.
Looking for specialist and owner builder construction wasn’t as easy as you think. Most home loan brokers and finance brokers wouldn’t really understand the nuances of how to do those sort of loans. Because I came from a background in construction development finance, I had an appreciation of how staged rules of structured evaluations need to be structured. The bank’s criteria on how they view credit and what they’re comfortable into and also the fact that it’s a long-term relationship, it’s not hear the line “see a lot of good luck with it”. It is something where you might be engaged with that person for anywhere from six months or two years while they’re doing their, so you wanna have a good rapport with somebody and you really want them to be an industry expert otherwise when things go wrong invariably they do the outside forces in most cases. Then you need some help to go through that process.