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Can you get LMI on a purchase if the bathroom is in a state of disrepair?

Discussion in 'Property Finance' started by mja, 6th Oct, 2015.

  1. mja

    mja Well-Known Member

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    Would it be possible to obtain 90% LVR if the bathroom isn't really in a usable state? A picture paints a thousands words, see attached.
     

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  2. wylie

    wylie Moderator Staff Member

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    Our son couldn't get any sort of loan after he ripped out his bathroom. Maybe you can get a loan through if they don't do an "on site" inspection.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nope, do a Contract Of Sale loan.
     
  4. mja

    mja Well-Known Member

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    Thanks D.T., can you elaborate?
     
  5. mja

    mja Well-Known Member

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    LMI requires a full inspection, which is a valuer looking through the property. It sounds like I need to only go to 80% LVR and have the lender only do a desktop val/kerbside val....
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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  7. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Not really there are a couple of lenders out there who can do 90% loans with no inspection needed and they just got of the COS.

    Refinance different story!!
     
  8. mja

    mja Well-Known Member

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    o_O

    Interesting! Is ANZ one of them?
     
  9. tobe

    tobe Well-Known Member

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    Legally you need to disclose what's going on, rather than just pick a lender that gives discretion to use the contract or a kerbside val etc.


    Many lenders and LMI providers are fine with a crappy bathroom, as long as you have a plan and the cash to make it liveable (saleable).
     
  10. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Possibly :)

    With the bathroom, i had a case where the inspector advised that it would cost 10K to fix... because the customer had cash in the bank the took this into consideration and got approved.
     
  11. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    COS/AVM for these kinds of deals.

    Else you can run with a full val with notes, quotes and cash available to complete - this is still at the assessor/LMI discretion to approve.
     
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