Finance and Marketing

When one is both the owner and the builder of their own home, they will have some difficulty securing a home loan. This is because banks and lenders are wary of these owner builders. The more common practice is that banks and lenders usually lend only to those homes that are built by licensed builders, and not to those who are owners and builders at the same time.

However, this does not mean that getting a loan of this type is impossible. There are a few lenders who are willing to grant such a loan as long as the loan applicant is capable of providing a guarantor for in order to further ensure that the loan will be paid. Such a loan is also possible if there is a large amount of equity that can be provided, hence less risk is involved.

Despite the presence of these lenders, there are still some restrictions on the amount that one can borrow, or if borrowing is allowed at all. For first time home buyers the regular rate allowed to be borrowed is 80% of the property value. On the other hand an investor make likewise loan 80% of the property value. With the help of guarantors even in these owner builder construction loans there is the possibility of getting a 100% loan. For low doc loans an owner builder loan cannot be granted at all unless special arrangements are entered into which can be very costly.

Would be borrowers should also note that with regards to the value of the property they often will look at the plans and cost of construction. In most cases they will value the construction project at the value of the land and what any construction will cost.

However, lenders are usually conservative in any assessment of property and as much as possible will usually try to value any property and construction cost as low as can be allowed. This means that any owner builder should have sufficient equity interest in the land in question.

There are numerous options that can be explored when looking to help improve a debt situation. With the current market in financial crisis, many people are finding their debts are becoming a struggle and it’s harder for them to meet payments each month.

The added pressure can be too much for some which can cause them to bury their head in the sand. It is important to make sure this doesn’t happen as not contacting your creditors will make matters worse if you speak to them they can help give advise on what you need to do next.

There are several options to help people that are struggling to cope with their bills, the first thing to do is to keep in contact with the creditors who can help give advice on the options available. One good option would be debt management. Debt Management can be worked through with a debt management company or the individual can look at managing the debt by them self.

If the individual chooses to deal with their debt by themselves they will need to be aware of the hard work and determination that will be needed from them or they could easily find it too overwhelming. As long as the determination is there debt management can be really very simple.

The first steps to take when managing debt is to put pen to paper working out all monthly outgoings also including food bills and any other essential items needed for the month. Once the sums have been worked out,it will be easy to see what is being spent on unnecessary items and can cut back. You must be honest with yourself.

If one feels that they need some extra help and support after going over the procedure of Debt management themselves, there are debt management advisor companies that can help to lend this support, however shopping around is always advisable as all companies are different and it would be to the advantage of the individual to find a company that has the best benefits.