|If you are self employed and you do not have up to date company or personal tax returns then a low doc loan may be the right solution for your lending needs if you are purchasing a residential property.
- Low Doc Residential loans available to Self Employed Borrowers
- Borrow up to 75% of GRV less GST to 80% of the Total Development Costs (TDC) – Whichever is lesser
- Standard Residential Property (must be zoned residential)
- Companies and trusts and Natural Persons.
The main documents that we will accept that can be used to verify your income are:
- An Accountants Letter verifying your income.
- 12 months of Lodged BAS Statements from ATO Portal
- 12 months of Business bank statements
Most construction finance applications are assessed according to the standard process and many of the same documents are required, along with a fully completed documentation which includes:
- Signed fixed-price building contract between borrower and a licensed builder Tender
- Stamped, council approved building permit / stamped plans / FPBC / Specifications
- Copy of builder’s insurance policy
With a construction loan, you can break up the drawdown of the loan amount into five progressive draws, which parallel the construction phases. As one phase of the construction is complete, you are able to draw down the next portion of the loan. If you did not borrow 100% of the cost of construction, the lender will request that you pay all the funds you are required to contribute, before they release any payment to the builder.
- Purchase of the land
- The Slab / pad (floor – also known as ‘bearers and joists’ for wooden floors)
- Roof (usually including frames)
- Lock up
The fact that payment is delivered to the builder in stages means that cash is not paid out until the builder’s work can be inspected and approved by the borrower.
You must have an ABN that has been registered (and possibly GST registered if income is over $75,000) Most Lenders require ABN to be registered for 2 years. We have lenders that will accept an ABN registered for only 6 months.