LAND AND CONSTRUCTION
How you enter Land and Construction loans within the SOCA (Statement of Credit Assistance) within Infynity, will depend on how you are going to be submitting it to the Lender.
The SOCA and your submission to the Lender needs to reflect the same information.
If you need to, refer with the Lender on how the application needs to be structured for the Lender to be able to assess in their loan origination system once submitted.
The process is the same regardless of which version of ApplyOnline is used, at time of lodgement.
Below are examples to help you create the SOCA and submission to the lender.
Example 1 – One loan objective and one submission
In this example the client has one contract for the total land and build requirements.
When creating just the one submission for land and construction (house & land package). Select the loan objective within the SOCA and complete as normal.
Either create the one loan amount or with splits as required based on your discussions with the clients and structure requirements
Example 2 – Submitting two separate loan applications
In this example when you usually have two different contracts, settling at different times, and or different purposes or application types (full approval and pre approval), you would with the majority of the Lenders, be required to submit two separate loan applications, i.e. the land loan will be settled while the construction is preapproved.
Having one application for both would be problematic as the application would have a settled status once the land loan went through but there is still a portion for the construction that needs to go through approval milestones. Most lenders would have challenges reflecting this from a system perspective, therefore the two (2) applications would be required in the following examples (but not limited to).
Full application for the Land purchase
Pre-approval for the construction loan
Or you could be refinancing the land and then doing construction (loans settling at different times)
Full application for the land refinance (must settle first)
Full application for the construction loan
You can however create the one (1) SOCA but selecting two (2) loan objectives, which will create two (2) loan submission to complete with the Lender.
Select your multiple loan objectives within the SOCA
Complete the two loan objectives/purposes within the loans, securities & commentary tab
Under the recommendation tab select your Lender/Loans as normal, for each loan objective
Based on your objectives, the SOCA will produce two mortgage finance submissions
Additional information and tips
View and edit each submission before submitting to the Lender via NextGen ApplyOnline (AOL) as normal
Remember to link the applications in AOL (where required by the lender) and or have clear notes to indicate that there are multiple submissions that need to be assessed at the same time.
Lenders require overall serviceability to be evident, for both land and construction and not just the initial land purchase.
Disclaimer: This information is current as at the time of each QRG publication. It is a general information guide only.