Hello, I’m planning to buy some land and build a house. I don’t have permanent residence so am limited in the banks I can use. Currently, one bank I’m talking with is SBI Shinsei. Since I have a Japanese spouse I can get a loan from them no problem… however since we’re buying the land separately we need a bridge loan.
Shinsei doesn’t offer bridge loans, so that has to go through a different bank… and that different bank require the Japanese spouse to be working… my spouse doesn’t work so we can’t meet that requirement.
Does anybody know of a different bridge loan company we could use? Or some way around this?
3 comments
Different bank but same problem. Our house maker offered a bridge loan with their bank and the conditions are good. Hit me up via DM for more details / house maker referral
FYI, Shinsei has 2 bridge loan products.
One that is serviced directly by Shinsei with a total value of 80M JPY, and a separate one that you are likely referring to that is serviced by Aplus (100M).
Shinsei’s product is closer to a land advance loan and cannot be used to include miscellaneous fees (brokerage, acquisition, etc.)
The terms on both are pretty bad to be honest. Not to scare you away from either, but if the house isn’t complete within 12 months the interest rate spikes to around 14% or more.
You might say “Oh well 12 months is plenty of time” but there are plenty of things that can happen between contract closing and move-in. Covid, earthquake, supply shortages, etc. No builder will sign a guarantee for a delivery window either.
The other thing to note with these products is that it essentially puts a ticking clock on your ability to design your house. You really, *really* don’t want to go over your 12 month bridge loan term so you’ve got to figure out all aspects of the house, sourcing quotes on materials (assuming you want to negotiate with the builder) etc.
Its a shitty position to be in.
Sincerely, another person who is considering putting myself in this very position…
Best of luck
I also got rejected for the bridge loan that was from the SBI group, not fun but I’m lucky my builder Is able to cover a few months of payments. The rate is 15 % yearly… At least there are no setup fees.
I did put in a large down payment to the builder to keep them afloat.