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Low Doc Loan for vacant land

Discussion in 'Property Finance' started by Timmyd02, 31st Jan, 2016.

  1. Timmyd02

    Timmyd02 Active Member

    Joined:
    18th Jun, 2015
    Posts:
    26
    Location:
    Melbourne
    Hey Guys,

    Im after some advice about some land that I'm looking at.

    Has anyone had experience with low doc loans on vacant land? I know usually with house and land, then 20% deposit means no LMI but have heard on low doc with vacant land LMI can start from 40% deposit? How easy are low doc loans these days?

    We are looking at buying with the intention of starting construction within 12 months

    Thanks
    Tim
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,106
    Location:
    Melbourne, Nationwide
    Lo doc loans are very restricted, we've often found that people who legitimately qualify for a lo doc loan, also qualify for a full doc loan with only a little extra effort on their part. The simple question needs to be asked, "Why do you think you need a lo doc loan instead of a full doc loan?"
     
    Timmyd02 likes this.
  3. Timmyd02

    Timmyd02 Active Member

    Joined:
    18th Jun, 2015
    Posts:
    26
    Location:
    Melbourne
    Oh ok. Thanks. I was thinking because I'm self employed and last years tax returns show a low income. But this is due to the fact that my development settled just after June 30.
     
  4. tobe

    tobe Well-Known Member

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    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    If your planning on building within 12 months then do the finance for both house and land.

    Most non conforming lenders don't like vacant land or construction so there's less choice for low doc construction. Rams is pretty good, along with some others.
    Like Pete said, get a broker (like Pete) to go over your tax returns first and see if there are other options other than low doc.
     
  5. Timmyd02

    Timmyd02 Active Member

    Joined:
    18th Jun, 2015
    Posts:
    26
    Location:
    Melbourne
    I'm only looking at lending for the land at the moment. I will start building within 12 months but have no plans of permits and it will be ppor. Also I'm a builder and its a pain doing construction loans. I will get funds elsewhere for construction and re-finance after the build.

    But yes I do intend on seeing a broker, just wanted to get some opinions first