Incomplete Construction
Secure the short-term funding needed to complete your build if construction stalls.
ASCF can provide incomplete construction loans in cases where the construction of a property has stalled and/or the borrower has run out of funds to complete the building. An ASCF incomplete construction loan can be offered as either a first or second mortgage loan.
ASCF can offer incomplete construction loans for a single dwelling or a duplex construction to both owner-builders and those using a licensed builder.
ASCF incomplete construction loans can provide the critical funding needed to restart a project that has stalled due to unexpected budget variations, the collapse of the original builder, or traditional lenders withholding further drawdowns.
Instead of waiting indefinitely or selling an unfinished site at a loss, ASCF’s incomplete construction loans can help push a stalled build to completion.
Below is an example of how ASCF assisted a previous borrower with an incomplete construction loan:
What is an Incomplete Construction?
Benefit Title
Benefit Description
Case Study
When an owner-builder faced cost overruns and exhausted funds while constructing a luxury home, ASCF stepped in with tailored financing to complete the project and enable a successful sale.
Exit
The sale of the property will repay the ASCF loan.
Solution
ASCF provided a $600,000 loan at 64.59% LVR based on the “as is” valuation of the incomplete property. The loan was secured with additional collateral from two other properties owned by the borrower. Funds were drawn progressively over the nine-month term, with interest capitalised and only applied to amounts drawn.
Problem
A broker approached ASCF with an owner-builder client who needed funds to complete the construction of a luxury home in Kew, Victoria. The client had exhausted his cash reserves and could not meet the cost overruns incurred on the construction. The client sought $500,000 to complete the construction of the property, which they would then sell.