Hello all.
Recently put in an offer for a +cf property in Regional WA, which to my delight was accepted. Timing was certainly to my advantage, as another offer for the property was submitted very shortly after the owner signed mine. ($55000, got it for $50000)
A lot of activity in this little town in the wheatbelt, due I’m sure to the yields which are particularly high for a non-mining town. The property in question has a reasonably good rental return; the rental agent feels confidant I will be able to find a qualified tenant paying between $110 to $120/week within a couple weeks.
Anyway, as happy as I am for securing this property, I’m having trouble getting finance. As I don’t quite fit into the standard finance criteria, I need mortgage insurance. Unfortunately, lenders won’t provide mortgage insurance for this area, even if I put down a 50% deposit!!
The clock is ticking, as I need confirmation of finance by Feb 1st. Any ideas out there?
Thanks, Ivan
0403 044 660
Hi Ivan, and welcome to the forum,
Is this a Low Doc lend? If so it seems the post code is probably out side LMI policy,
If you e-mail me the details, post code, type of finance etc I will see what I can do,
The other option would be to purchase unencumbered from existing equity.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ivan and thanks for your post. Welcome to the forums! [biggrin]
Well…
Is the issue the bank won’t lend because an insurer won’t pick up the loan, or is it because of your credit circumstance and a high LVR on this deal?
If I read your post correctly then it is the first issue before you. I know that some banks self-insure (e.g. the CBA used to). It would make sense to go with that type of lender. I would certainly be finding out which branches of what banks are in the town where you are buying and I would approach them directly to find out what their lending criteria are. Be sure to ask what there lending limit is before needing head office approval and try to stick below it!
If it is because of your own circumstance then perhaps try to pay down some debt so that you don’t appear like such a risky proposition even if you do offer to pay a 50% depsoit on this deal.
I hope this has helped. To try and get other opinions I have moved the thread to the finance area where there are contributors with more knowledge re: finance than me.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Also, With 50% deposit you may not need LMI.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks guys,
There is no problem with putting down a decent deposit, it’s the fact that I am self employed and cannot produce the required financials. Am currently speaking with a branch of my bank located in this town, hoping for a more desirable result.
Unfortunately as the banks don’t want to speak to me at this stage, I think my best option would be to find an equity partner, if possible.
Does anybody know how I may go about achieving this?
Thanks,
Ivan
blah
I thought you must of needed a lo doc loan.
If you want to email me with the details, I know a few lenders that will do it.
Kerri
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
Kerri, He does need a Low Doc Loan, Ivan is self-employed with no financials.
Ivan, If you do not have the required financials then you are in need of Low Documentation Finance.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
YOu want to sell the property let me know
If you want finance, get yourself a broker and stuff the banks.
They are just too hard to deal with.
Get a broker and your problems will be solved.
Byronent
Adelaide SAPerhaps this excerpt taken from an email from my accountant’s mortgage broker will shed some light on the situation:
‘The finance we considered for you had to be under a “lo doc” scenario, as
you did not have two years full personal and company taxation returns. The
major stumbling block was the “mortgage insurer” would not recognise the
town as “suitable under their guidelines” and the postcode was
not listed on their approval sheet. My understanding why this town would not
be acceptable is it is located in rural area ( allowing for the property
being residential) and population under 10,000 people.I have contacted other’s in my finance network, who might consider doing the
loan at a business loan rate which would be higher than normal housing.
Unfortunately they weren’t able to assist, primarily due to location and
population of the town. Another consideration is the present balance sheet
commitment due to the ATO, and the repayment program.So in summary, I would contact the agent you have signed this contract with
and confirm you cant get finance for the property and release your
contractual commitment.’There you go.
I really think this property is a unique find, an equity partner would be the way to go for both of us, I believe.
Cheers,
Ivan
If it is a question that you have exhausted all avenues of lending (and from what Mobile Mortgage has stated, you may not have , as MM’s post’s, if you read ALL his comments, have always been very objective and unbiased) then Ivan may be right. Seek a joint venture as 50% of something is always better than 100% of nothing! However you’d hate to look back after a joint venture to only then realise you may have been able ‘somehow’ to have satisfied a lender’s criteria. I think Steve McKnight’s motto of matching the right solution to the right problem is certainly true in your situation. Again, failing to qualify for any finance then I’m sure that there would be many on this forum who may be interested in the deal. I know I would if it stacked up on paper, Ivan, et al, etc.
Good luck!
Kind regards,
Gatsby!CAn we have the postcode and name of Mortgage insurarer?
Byronent
Adelaide SAIt is easy to get a loan for this property if it is zoned residential and the town has 10,000 people. No mortgage insurance will apply if you have a substantial deposit. I would still like to know how much deposit you have before I can tell you which product is available.
I did a low doc, rural zoning, 48 acre property recently and that went through fine. If this can be done, your’s certainly can be. I don’t the whole story has been presented yet. It is a house isn’t it?
_____________________________________________
[withstupid]
The forumite formally known as Big RobMortgage Adviser
<<I did a low doc, rural zoning, 48 acre property recently and that went through fine. If this can be done, your’s certainly can be. I don’t the whole story has been presented yet. It is a house isn’t it?>>
If the person lives in the town where they grew up! With Low Doc’s. Does the lender(s) have any consideration for this, to get the loan accross the line? If it’s rural or the population is small?
Jaffasoft
No. It is all about credit policy. They do not consider where you grew up. They consider your ability to complete a transaction and to repay debt. They also place heavy emphasis on the saleability of property in the event of default. That is why they don’t like rural or small towns. The population is not high and investors come and go.
_____________________________________________
[withstupid]
The forumite formally known as Big RobANZ will do low doc loans virtually anywhere in Aust without mortgage insurance with an LVR up to 65%. (Won’t do for companiens or trusts under low doc tho).
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Dear MM,
Responding to your reply last night:
________It is easy to get a loan for this property if it is zoned residential and the town has 10,000 people. No mortgage insurance will apply if you have a substantial deposit. I would still like to know how much deposit you have before I can tell you which product is available.
I did a low doc, rural zoning, 48 acre property recently and that went through fine. If this can be done, your’s certainly can be. I don’t the whole story has been presented yet. It is a house isn’t it?
_______Thank you for your response.
Firstly, yes it is a house. A fibro and tile house, but a house none the less.
In relation to the deposit I have available, I could deposit up to 60% of the value of the house, it’s just that I don’t believe that would be the most effective way to tie up all that cash. As I’m sure you know, there are managed property funds available returning good cashflow and gains that are a much more liquid investment.
I am very interested in purchasing this property; a deposit of 10 to 20k still seems quite within the bounds of reason to me, anymore doesn’t really add up.
I would like to persue your proposal further, at your convenience. The only restriction is proof of finance is required by the 1st of Feb.
If this doesn’t work and an equity partner doesn’t appear, perhaps I could ask someone for a finders fee, as a last resort.
‘Who owns the gold makes the rules’
This seems to be my lesson in banking so far.
Look forward to your response.
Regards,
blah
sorry about that lovely signature,
Regards,
Ivan
0403 044 660
Hi Ivan,
I think you may have me confused with Rob, The Mortgage Adviser.
Here is his e-mail address. [email protected]
cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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