Hi.
Only been a business owner for 6 months and would like to know the best way to get finance for IP's, specifically building on a block of land we have. I've been told that we can get a no-doc loan at 70% LVR but would prefer lo-doc. Is this acheivable?
Regards,
Gav H
Hi Gav
A Nodoc loan means that you are not required to state any form of income whereas a lodoc loan requires you to state in most cases your income on the application however additional documentation is not required.
This product is aimed at the self employed market where the business owner has not had the opportunity of preparing their accounts and therefore this information is not readily available to be assessed.
In saying this most lenders will require a minimum of 1 year self employment.
There are a couple of non conforming lenders who will consider an application after 1 day however the rates and set up costs are more expensive.More details would be required to provide a proper answer.
Richard Taylor | Australia's leading private lender
Gav H wrote:Hi.Only been a business owner for 6 months and would like to know the best way to get finance for IP's, specifically building on a block of land we have. I've been told that we can get a no-doc loan at 70% LVR but would prefer lo-doc. Is this acheivable?
Regards,
Gav H
Hi Gav,
I have an acquaintance who was able to backdate an ABN for 2 years. He used this to qualify for a low doc loan. I think he also did the same with gst registration. Maybe some Mortgage Brokers on the forum could qualify if this is a suitable way around your problem?
Ian
Ian
Backdating your ABN when you only started to carry on an enterprise 6 months ago with the sole purpose to obtain finance would be seen as fraund and certainly not recommended.
There are a couple of lenders that do not require you to state your ABN on the application form so as long as you understand the term lodoc this is achievable.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:IanBackdating your ABN when you only started to carry on an enterprise 6 months ago with the sole purpose to obtain finance would be seen as fraund and certainly not recommended.
There are a couple of lenders that do not require you to state your ABN on the application form so as long as you understand the term lodoc this is achievable.
I am not surprised Richard. When I heard that this person had done it I thought it was a bit suspect. Interestingly enough he was advised to do it from a non-bank lender who had the mortgage over his PPOR. He wanted to do a duplex development and it was the only way for him to get a loan to finance the project. ie: top up his loan to access equity to get the deposit for the land and then the construction loan.
Cheers
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