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Your Guide to Securing 100% Development Finance

In the competitive world of property development, securing adequate financing can make all the difference. With
100% development finance, property developers can access the necessary funds to cover all development costs
without having to invest their capital.

In this blog, we will delve into the basics of 100% development finance, its benefits and how to secure it.

 

Understanding 100% Development Finance

The mechanism of 100% development finance is straightforward. Developers secure a loan that covers the entire
development costs, including land acquisition, construction expenses, professional fees, and any other costs.
Throughout the development period, the developer makes monthly payments to the lender, servicing the interest on
the loan. Upon completion and sale of the property, the developer repays the loan in full, using the proceeds
from the sale.

 

Benefits of 100% Development Finance

 

  1. No Need for Personal Guarantees or Collateral:
    • Liberates developers from personal financial risk.
    • Preserves personal assets and financial stability.
  2. Streamlined Funding Process:
    • Avoids lengthy application procedures.
    • Facilitates quick access to capital.
    • Allows developers to seize market opportunities promptly.
  3. Potentially Lower Interest Rates:
    • Recognizes mitigated risk, resulting in lower rates.
    • Reduces financing costs.
  4. Flexible Repayment Options:
    • Aligns with project cash flow.
    • Particularly advantageous during the initial stages.
    • Ensures a manageable and sustainable financial strategy.
  5. Comprehensive Coverage of Project Costs:
    • Encompasses construction, materials, and professional fees.
    • Safeguards working capital.
    • Provides a financial buffer for unforeseen expenses and project enhancements.

 

When to Consider 100% Development Finance?

When is 100% development finance the right choice for you? Several key considerations can help you determine if
this financing option aligns with your project’s needs.

 

How to Get 100% Development Finance?

To obtain 100% development finance, property developers should follow these crucial steps:

  1. Examine Your Credit Score:
    • Meticulously examine your credit score and ensure that it is in good standing.
    • A high credit score indicates financial responsibility and increases the likelihood of loan approval.
  2. Save for a Larger Deposit:
    • Diligently save up for a larger deposit, despite 100% development finance eliminating the need for a
      substantial down payment.
    • Having some savings demonstrates financial stability and commitment to the project.
  3. Seek a Guarantor or Co-Applicant:
    • Consider enlisting the support of a guarantor or co-applicant with a strong credit history.
    • Their involvement can enhance the loan application’s credibility and increase the chances of approval.
  4. Explore Joint Mortgages:
    • Explore the possibility of a joint mortgage with another individual.
    • Combining incomes can improve the overall financial strength of the application and increase the
      likelihood of approval.
  5. Investigate Government-Backed Loan Programs:
    • Thoroughly research government-backed loan programs specifically designed to support property
      development.
    • These programs often offer favorable terms and reduced interest rates, making them an attractive option
      for developers seeking 100% financing.
  6. Compare Loan Programs:
    • Research and compare various loan programs to identify the one that best aligns with your project’s
      requirements and financial circumstances.
    • Consider factors such as interest rates, repayment terms, and eligibility criteria when evaluating loan
      options.

 

Partnering for Financial Success

With careful planning and a strategic approach to financing, developers can turn their visions into tangible
assets that contribute to the vibrant landscape of real estate development. Explore your financing options with
us today and take the first step towards realizing your project!