Hi
There is some good information on lenders on the site.
Some posters talk about buying wraps in rural towns
has anyone been able to do a no doc loan on a Rural A or B
property?The best we were offered was 8.8% and 60% of valuation
on a no doc loan for our Rural A property. I have rung about 10 lenders in the area many said they could organise no doc loans at around 7% and 80% of valuation but wouldn’t even look at Rural A.Another down side is that since lenders brought in this new
attitude to Rural A it reduces the buyers who can buy our house.
They fall in love with it but when it comes down to financing
they need 35% of the deposit.Please refresh my memory – what’s are Rural A and Rural B properties?
Keep smiling
Felicity
Hi Felicity
Not sure exactly how Rural A or B are
catagorised. Rural A for example could
be Rural pursuits.If members are thinking about buying properties
with acreage out in Rural areas I would suggest
they first check with their lender on interest rates
as well as how much % they can borrow on valuation.
TaraTara,
My advice is to check the council zoning for the property as a guide to what lenders will use as the basis for classification.
I know that anything zoned rural comes with alarm bells from a financiers point of view.
As a general rule:
Residential: 80% LVR (higher with mortgage ins. or other security)
Commercial: 80% – 70% LVR
Industrial 60% – 70% LVR
Rural: 60% – 70% LVRAs far as mortgage insurance goes… the magic figure seems to be 14,000 people or more in a location, although this varies from lender to lender.
Cheers,
Steve McKnight
(holidaying in the Sunshine State where is was cloudy all day – the sunshine business looks like a marketing sham to me [])Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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