mortgage advice needed

[siamsomjit]

Hi. i am thai and am legally married in thailand to a foreigner.My husband and i wish to get a small loan of 800 K bath in order to build a 2 unit townhouse for the purpose of selling it.

it seems to be very hard though to get this.

my husband has a fixed income from a social disablity check from his homecountry. you might as well say he is a pensioner because he will get this check garanteed in writing ,until he is 67 years old. it is an income of 45K bath a month. Also do i (we) have a bankaccount here in thailand exceeding a little more than 1.1 mln bath.

furthermore i own 2 plots of land (chanut) combined value is about 2 mln bath. One of the plots has a house on it , wich isn't worth much though. the other one i want to build on.

All papers and drawings for the townhouses are there already and officially approved. Still i can not seem to get a loan.

Advice is needed.

Thank you so far.

Edited October 12, 2013 by sbk
personal info removed

[PattayaPhom]

First question any lender will ask is how will you repay the loan. As your only income seems to be a small pension from your husband it's unlikely you would be able to make repayments hence the reluctance to offer a loan. SCB were offering loans at 10% that may be lent against your existing land with small house but repayments with insurance over 25 years would be about 9k a month

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[FiftyTwo]

First question any lender will ask is how will you repay the loan. As your only income seems to be a small pension from your husband it's unlikely you would be able to make repayments hence the reluctance to offer a loan. SCB were offering loans at 10% that may be lent against your existing land with small house but repayments with insurance over 25 years would be about 9k a month

Sent from my ST27a using Thaivisa Connect Thailand mobile app

You can get a 1M home loan on an income of 15k a month, so repayments not a problem.

SCB home loan rate is currently 2% first year, then 7% for the rest, but they want 5% for a life insurance policy.

[siamsomjit]

is 45K a small income? as a guarantor this should be well over sufficient i think,as my monthly payback should be only about 12K on this loan. not having an income myself right now might make things harder,

i will follow advice from fifty two first and see what happens. tnx get back on this one soon to let you know

[PattayaPhom]

First question any lender will ask is how will you repay the loan. As your only income seems to be a small pension from your husband it's unlikely you would be able to make repayments hence the reluctance to offer a loan. SCB were offering loans at 10% that may be lent against your existing land with small house but repayments with insurance over 25 years would be about 9k a month

Sent from my ST27a using Thaivisa Connect Thailand mobile app

You can get a 1M home loan on an income of 15k a month, so repayments not a problem.

SCB home loan rate is currently 2% first year, then 7% for the rest, but they want 5% for a life insurance policy.

Yes a home loan but the OP only has land and wants to build a shophouse so won't qualify for a mortgage like you.

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[myluckythai]

First question any lender will ask is how will you repay the loan. As your only income seems to be a small pension from your husband it's unlikely you would be able to make repayments hence the reluctance to offer a loan. SCB were offering loans at 10% that may be lent against your existing land with small house but repayments with insurance over 25 years would be about 9k a month

Sent from my ST27a using Thaivisa Connect Thailand mobile app

You can get a 1M home loan on an income of 15k a month, so repayments not a problem.

SCB home loan rate is currently 2% first year, then 7% for the rest, but they want 5% for a life insurance policy.

Yes a home loan but the OP only has land and wants to build a shophouse so won't qualify for a mortgage like you.

Sent from my ST27a using Thaivisa Connect Thailand mobile app

will it help her if she get's the loan on the other plot where there's a house already stating it is for improving the house? btw i am the husband as you understood by now i think

Edited October 3, 2013 by jviersel

[starship]

Thai banks often differentiate 'income', from 'work income'. A lot of people assume that because they have a regular income they will get a loan - this is not always the case.

You say you have two plots of land, one with an old (i guess in poor condition) house, and one without. You want a loan to build a townhouse to sell on the vacant plot. You don't state where you are living and in which location so i assume you are renting. Something to consider, is that it is not always easy to sell something in Thailand. For example if you are in the country, the land might not be worth that much, so may not add that much value to the property. Obviously in Bangkok etc. where land values are very high, a plot of land that you already own, would make the entire property potentially much more valuable.

What i mean is, if you are in the country the amount of money you will spend on the house including loan repayments, may not be worth the hassle for the extra amount you may be able to sell it for.

If you can't sell it you've technically got a lot of money tied up in the property which is then more of a liability.

Perhaps consider investing the money you may be able to loan into another enterprise which gives you a regular income. If you have 45k a month already that's pretty good, especially in the country, and if so do you really need this extra risk/hassle? You may be able to lend less set up a small business for 1-200k , and if that can gives you 8-10k a month you are getting a better return on your money invested with less risk than building a house to sell.

This is all speculation of course, you may be able to build it and sell it for substantially more, but equally you may not, and there's a lot of risk involved. If you go ahead, in my experience SCB as others have suggested seems to be the most lenient lender, and having some income is better than no income. Being properly married, which i guess you are also helps. As mentioned in many threads before, if one bank or branch says no try another one. Remember, although they are very cautious, banks make their money from lending. Try looking for quiet branches with few customers. They all have targets to meet and want commission from selling you a loan, so you may have more success in one of these.

Good luck whatever you decide.

[phitsanulokjohn]

If you're only buying it to sell,then save yourself some interest and buy it cash,earn a profit and replenish your bank account.

[robblok]

I remember when we wanted a mortgage.. she had no income fixed income as a tourguide I had.. but it would not fly also legally married. As a foreigner you cant own land so they wont give you the loan even if you have income and are married.

Your in the same situation.. you should have an income not him then you get the loan.

[Soutpeel]

I remember when we wanted a mortgage.. she had no income fixed income as a tourguide I had.. but it would not fly also legally married. As a foreigner you cant own land so they wont give you the loan even if you have income and are married.

Your in the same situation.. you should have an income not him then you get the loan.

if one is in the postion to co-sign a mortgage as a foreigner for a thai national, income for the Thai national and not being married are not even considered certainly with SCB.

Mrs SP got a 100% mortgage on a 15 year term (THB +/- 3.0million) through SCB before she was legally Mrs SP and she wasnt working at the time, they only considered my income, but as you have correctly stated you will not get a mortgage as a foreigner in your own name on a landed property it has to be in a Thai nationals name.

I have to provide 12 months payslips, letter from the Thai company stating I was a long term employee and obviously the WP and passport copies...6 week process, accepted for the loan, for me a very painless process, went the bank once and signed in two places

In terms of the OP question, the key is finding out whether a particular bank will accept the husband as being acceptable to co-sign the loan, once this is achieved the rest is easy..

[Soutpeel]

As mentioned in many threads before, if one bank or branch says no try another one. Remember, although they are very cautious, banks make their money from lending. Try looking for quiet branches with few customers. They all have targets to meet and want commission from selling you a loan, so you may have more success in one of these.

in the case of mortgages only the specific banks head office in BKK makes the decision on whether the loan is granted that why typically it takes around 6 weeks to get a decision, the branches dont really have the authority all they do is pass on the paper work, so going to a quiet branch etc is somewhat irrelevant, it will not change anything...

this is a loan one is applying for not opening a bank account...

[trogers]

This statement "to build a 2 unit townhouse" shows the bank that you do not know what you are talking about.

A row of townhouses will need a min. of 3 units. Two units with a common wall is called "twin houses" or semi-detached in the West.

[FiftyTwo]

As mentioned in many threads before, if one bank or branch says no try another one. Remember, although they are very cautious, banks make their money from lending. Try looking for quiet branches with few customers. They all have targets to meet and want commission from selling you a loan, so you may have more success in one of these.

in the case of mortgages only the specific banks head office in BKK makes the decision on whether the loan is granted that why typically it takes around 6 weeks to get a decision, the branches dont really have the authority all they do is pass on the paper work, so going to a quiet branch etc is somewhat irrelevant, it will not change anything...

this is a loan one is applying for not opening a bank account...

SCB take 10-14 days at the moment.

BKB are even quicker.

The banks really want to lend home loans at the moment.

[myluckythai]

We live in Buriram and i have no doubt it is a good investment. it is inside the city. close to the trainstation and every building here is sold before fininshed, at a profit of over 100%. . The city is floodfree and atracting a lot of money right now from investors all around. . Thanks for this advice though. it might as well have prevented me from losing money and that's Always friendly advice...

Bangkok bank is taking over 3 months already so how you get 2 weeks i don't know.

If it's called a twin house , townhouse or doghouse is irrelevant...

The advice of putting money into a small enterprice, indeed we did it already but not long enough yet to guarantee an income for the bank.

For the rest we will try SCB as this seems to be the most common advice i get online and offline.

THANKS EVERYBODY FOR THINKING WITH US, IT"S VERY MUCH APPRECIATED!!!!!!! cheers to you all

We will keep on trying and trying until we're Lucky..........

[PattayaPhom]

We live in Buriram and i have no doubt it is a good investment. it is inside the city. close to the trainstation and every building here is sold before fininshed, at a profit of over 100%. . The city is floodfree and atracting a lot of money right now from investors all around. . Thanks for this advice though. it might as well have prevented me from losing money and that's Always friendly advice...

 

Bangkok bank is taking over 3 months already so how you get 2 weeks i don't know.

 

If it's called a twin house , townhouse or doghouse is irrelevant...

 

The advice of putting money into a small  enterprice, indeed we did it already but not long enough yet to guarantee an income for the bank.

 

For the rest we will try SCB as this seems to be the most common advice i get online and offline.

 

THANKS EVERYBODY FOR THINKING WITH US, IT"S VERY MUCH APPRECIATED!!!!!!! cheers to you all

 

We will keep on trying and trying until we're Lucky..........

 

If land is selling that quickly, why not sell one of your existing plots to fund the build, after all you expect a quick 100% profit on the townhouse?

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[siamsomjit]

we have several good reasons not to sell the plot, some of 'm you can fill in yourself perhaps, but that's not the issue here, so i prefer not to get in to those. thanks anyway

[siamsomjit]

This statement "to build a 2 unit townhouse" shows the bank that you do not know what you are talking about.

A row of townhouses will need a min. of 3 units. Two units with a common wall is called "twin houses" or semi-detached in the West.

My husband doesn't speak a word of thai, but i do....my english is not that great , so whatever i call it ,

the bank knows exaclty what i mean . And like i said before , all papers and drawings are there already and approved by the proper authorities so there can be no mistaking about what it is i want to build . Also do i have an exelent constructioncompany/architect who is well aware of what it is we are taking about.

I am not sure this is advice or just a nag...and it doesnt matter anyways because it is not helpfull at all!!!

Edited October 5, 2013 by siamsomjit

[siamsomjit]

We live in Buriram and i have no doubt it is a good investment. it is inside the city. close to the trainstation and every building here is sold before fininshed, at a profit of over 100%. . The city is floodfree and atracting a lot of money right now from investors all around. . Thanks for this advice though. it might as well have prevented me from losing money and that's Always friendly advice...

Bangkok bank is taking over 3 months already so how you get 2 weeks i don't know.

If it's called a twin house , townhouse or doghouse is irrelevant...

The advice of putting money into a small enterprice, indeed we did it already but not long enough yet to guarantee an income for the bank.

For the rest we will try SCB as this seems to be the most common advice i get online and offline.

THANKS EVERYBODY FOR THINKING WITH US, IT"S VERY MUCH APPRECIATED!!!!!!! cheers to you all

We will keep on trying and trying until we're Lucky..........

If land is selling that quickly, why not sell one of your existing plots to fund the build, after all you expect a quick 100% profit on the townhouse?

Sent from my ST27a using Thaivisa Connect Thailand mobile app

and btw i did not say land is selling like this at all. it is buildings i am talking about!

[trogers]

I do not see how this issue is a mortgage. You have produced construction plans by an architect. You intend to sell the house(s) when construction is completed. You are asking for bank funding as a developer, not a mortgage as a house owner.

Thus we have two opposing viewpoints in such a quest. The developer sees the promise of $$$ at the end of the venture. The bank in its duties to depositers and shareholders will ask 'what if the house(s) don't sell'. What is the risk? What are it's recourses to recover the debt? Time and trouble, etc...

[myluckythai]

I do not see how this issue is a mortgage. You have produced construction plans by an architect. You intend to sell the house(s) when construction is completed. You are asking for bank funding as a developer, not a mortgage as a house owner.

Thus we have two opposing viewpoints in such a quest. The developer sees the promise of $$$ at the end of the venture. The bank in its duties to depositers and shareholders will ask 'what if the house(s) don't sell'. What is the risk? What are it's recourses to recover the debt? Time and trouble, etc...

Does the bank need to know? NO! as far as they ar e concerned it is a mortgage. AS I WAS ASKING PEOPLE HOW TO GET A MORTGAGE. btw i trust my contractor a hell o f alot more than people like you.

for the rest i don't mind much about 'smart' remarks that are not helpfull,

i see the quality of replies is getting poor so i will end this topic as far as i'm concerned. go have a beer or whatever it is you do when you are not trying to outsmart people without any intention of being helpfull.

THANKS FOR ALL THE HELFULL REPLIES.

[PattayaPhom]

I think you have been offered help. Try SCB loan against the small house you have as collateral. Try different banks. Try raising funds by selling existing assets. All banks will require a way of paying back a loan by way of income which your wife dosnt have. As stated you can't get a mortgage on a property that isn't yet built. If these options are not helpful then unless someone says X bank will give you money tommoro It seems you won't be happy.

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[Soutpeel]

I do not see how this issue is a mortgage. You have produced construction plans by an architect. You intend to sell the house(s) when construction is completed. You are asking for bank funding as a developer, not a mortgage as a house owner.

Thus we have two opposing viewpoints in such a quest. The developer sees the promise of $$$ at the end of the venture. The bank in its duties to depositers and shareholders will ask 'what if the house(s) don't sell'. What is the risk? What are it's recourses to recover the debt? Time and trouble, etc...

Does the bank need to know? NO! as far as they ar e concerned it is a mortgage. AS I WAS ASKING PEOPLE HOW TO GET A MORTGAGE. btw i trust my contractor a hell o f alot more than people like you.

for the rest i don't mind much about 'smart' remarks that are not helpfull,

i see the quality of replies is getting poor so i will end this topic as far as i'm concerned. go have a beer or whatever it is you do when you are not trying to outsmart people without any intention of being helpfull.

THANKS FOR ALL THE HELFULL REPLIES.

Er you have posed a question on an open forum and you will get differing opinions, what "trogers" wrote was not "trollish" or flaming but a different perspective thats all ....so IMHO your out of line, just because you dont get the answers you want to see, doesnt mean you can start insulting people...

If you trust your contractor more than the advice on TV, then can I suggest you ask them to raise the loan for your and begs the question why you even asked on TV then ?

[myluckythai]

I do not see how this issue is a mortgage. You have produced construction plans by an architect. You intend to sell the house(s) when construction is completed. You are asking for bank funding as a developer, not a mortgage as a house owner.

Thus we have two opposing viewpoints in such a quest. The developer sees the promise of $$$ at the end of the venture. The bank in its duties to depositers and shareholders will ask 'what if the house(s) don't sell'. What is the risk? What are it's recourses to recover the debt? Time and trouble, etc...

Does the bank need to know? NO! as far as they ar e concerned it is a mortgage. AS I WAS ASKING PEOPLE HOW TO GET A MORTGAGE. btw i trust my contractor a hell o f alot more than people like you.

for the rest i don't mind much about 'smart' remarks that are not helpfull,

i see the quality of replies is getting poor so i will end this topic as far as i'm concerned. go have a beer or whatever it is you do when you are not trying to outsmart people without any intention of being helpfull.

THANKS FOR ALL THE HELFULL REPLIES.

Er you have posed a question on an open forum and you will get differing opinions, what "trogers" wrote was not "trollish" or flaming but a different perspective thats all ....so IMHO your out of line, just because you dont get the answers you want to see, doesnt mean you can start insulting people...

If you trust your contractor more than the advice on TV, then can I suggest you ask them to raise the loan for your and begs the question why you even asked on TV then ?

I was asking about mortgage advice wasn't i? i thanked the people who gave real advice TWICE.

Remarks anybody can make 'm nobody really needs 'm .....IMHO. If you feel i did not get it about the advice i got. guess you didn't read all i wrote. If you feel insulted i am so sorry,

Why not sell the land if it is so great here to sell? It wasn't even what i stated but surely he felt like saying this. that's advice or are you missing his point ?

Call it a twinhouse instead of a townhouse..so the bank knows i have no clue? That's advice? or did you miss it again? . .

I did not fancy his "advice" at all.

I feel i am not out of line and if you do up to you i guess.

where i come from this doesn't fly...we don't care for this kind of advice. The kind that wants to make you feel like a jerk and pretends to be genuine. there was not a single shred of helfull advice in what he said.

If he put the words differently i could've been, but he didn't

I think you are missing what he meant completely here.

I did get the advice and i also did get the flaming as you call it , even when you think it wasn't.

so for the 3rd time thank you for the true advice i got.

I'll keep to my own from now on because there are Always people trying to make it about something else than it is. Seen enough Farang to know there's only a few you can trust and the rest are BUMS here in Thailand. bye bye and have fun together

[trogers]

I think you have been offered help. Try SCB loan against the small house you have as collateral. Try different banks. Try raising funds by selling existing assets. All banks will require a way of paying back a loan by way of income which your wife dosnt have. As stated you can't get a mortgage on a property that isn't yet built. If these options are not helpful then unless someone says X bank will give you money tommoro It seems you won't be happy.

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The bank will not care what you will do with the money they loan to you if a mortgage is approved.

PattayaPhom is correct. A mortgage is made against an asset with a market value, and to a lender who has a proven regular income that is more than 2x the monthly payments.

I bought a 12 years old condo (5 years ago) with cash under my wife's name. We then took the title deed to Karsikorn Bank for a mortgage. It was approved a week after the bank's appraiser valued the condo.

The loan was approved to 60% of the condo's market value, and monthly payments at less than 40% of my wife's income.

This is a mortgage.

The bank had never ask what we intended to do with the money. We used the money to buy a smaller condo unit.

[Crossy]

It's definitely worth talking to Siam Commercial if you've not already.

We got a 'Construction Loan' of 50% of the contract price, stage payments made to the contractor, seems to have converted to a 15 year mortgage now we're moved in.

[siamsomjit]

It's definitely worth talking to Siam Commercial if you've not already.

We got a 'Construction Loan' of 50% of the contract price, stage payments made to the contractor, seems to have converted to a 15 year mortgage now we're moved in.

tommorow i go there, this sounds right. the constructioncosts will be 1.82mln . i put in myself 1.1mln. should be able to get the rest as i understand correct.hink i got it all mixed up. my husbands income is more than 2 times the monthly payback, but this didn't seem to matter to the bank.

.s. is construction loan the way they call it? and does the old house on the other plot matter here as a garantee. or are these 2 different things?

Edited October 7, 2013 by siamsomjit

[Crossy]

I'm not sure if they actually call it a 'construction loan' but that's what it is, based upon the contracted price with staged draw-down (a man actually came to inspect, once). In reality it took SCB so long to get their act together we had actually nearly finished building (self financed) before they paid out.

My wife has a good income in her own right, but I was required to sign as guarantor with loads of paperwork from my employer and the National Credit Bureau. How they determined what we could borrow is still a total mystery to me

IIRC security was the land upon which we were building which was worth slightly more than the total construction cost.

[trogers]

I'm not sure if they actually call it a 'construction loan' but that's what it is, based upon the contracted price with staged draw-down (a man actually came to inspect, once). In reality it took SCB so long to get their act together we had actually nearly finished building (self financed) before they paid out.

My wife has a good income in her own right, but I was required to sign as guarantor with loads of paperwork from my employer and the National Credit Bureau. How they determined what we could borrow is still a total mystery to me

IIRC security was the land upon which we were building which was worth slightly more than the total construction cost.

I have mentioned that such a case is bank funding to a developer. And in the perspective of the bank, they want to ensure that they can recover the debt should things not work out as planned by the developer.

Most common conditions a bank requires before approving the funding are:

1. The land which is the security has value above the loan amount

2. The developer should have sufficient money capital, if not, pre-selling the project is required

3. Loan amount should not exceed 50% of construction cost

4. Loan shall be paid out according to work done on the site

This is a business loan and will carry higher interest charges. Administrative cost will also be charged, eg. having a bank vauler visiting the site monthly to check on value of work done.