Are you planning a construction development but can’t get finance? A non-bank lender has launched a new construction loan product that might be able to help you.
Offered only through the broker channel, Australian First Mortgage has launched the new loan to help borrowers who don’t qualify for traditional construction loans because of credit scoring issues or previous credit history problems.
The loan is called the Alternate Option Construction Facility and could provide investors wanting to construct with a second chance at getting finance for their project.
The loan-to-value ratio on the construction loan is up to 90 per cent and the interest rates for the product start at 5.59 per cent.
“We have designed the product so it will work hand-in-glove with all brokers, especially those working closely with major builders who have customers that require specialised solutions to fund the construction of their home,” AFM general manager David White told Australian Broker.