An Australian non-bank lender has enhanced its suite of construction loans with the introduction of a non-conforming construction facility.
Australian First Mortgage (AFM) will launch the product exclusively through the broker channel. The Alternate Option Construction Facility is designed to assist borrowers who do not qualify for a traditional construction loan due to credit scoring issues or other past credit problems.
The product is available in both full-doc and low-doc, with rates starting from 5.59 per cent (comparison rate 5.84 per cent). The facility allows for defaults up to $1,000 and offers an LVR up to 90 per cent.
AFM general manager David White said the new non-conforming loan perfectly complements AFM’s existing suite of traditional construction products currently offered through the broker channel.
“The new non-conforming product further enhances the vast range of loans that AFM provides for single or multiple-dwelling construction projects,” Mr White said.
“We have assisted many thousands of customers to construct and complete their dream home over the years, and through this latest offering we aim to provide that same opportunity to those borrowers who fall outside of traditional lending guidelines.”
AFM said it has designed the product to work hand-in-glove with all brokers, especially those working closely with major builders who have customers who require specialised solutions to fund the construction of their home.
[Related: Listed lender launches innovative product]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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