Low Doc Loan
Low doc home loans can be great for investors who have irregular income or no employment history. You can borrow up to $1 million without having to show full proof of income. Generally, major lenders will only lend you 80% of the purchase price, which leaves 20% for deposit and stamp duty. You should set aside at least 25% of the purchase price for the deposit and any other costs associated with the purchase.
The minimum deposit amount varies from lender to lender, but the amount of money you need to put down will depend on the type of loan you’re applying for. Lenders generally prefer high-demand properties that offer prime security. Some won’t take properties that are unusual or in need of repairs. You can compare interest rates, fees, and features on several websites before selecting one lender for your loan. Keep in mind that many comparison sites are paid by lenders, so you may get a better deal from a lender who advertises their products on their site. However, Lenders Mortgage Insurance is not often listed on these comparison sites, so you’ll have to inquire about it.
If you’re a business owner, you’ll need to produce financial statements from the previous 12 months. This is so that the lender can determine whether you can afford the loan. A business that has registered its ABN is also a good candidate for a Low Doc Loans. These lenders also take into account the business owner’s income. If you’re self-employed, you need to make sure that your business is registered. A business owner’s income statement is essential in order to apply for low doc home loans.
How Much Deposit Do You Need For a Low Doc Loan?
For those who can’t provide traditional proof of income, low doc home loans can still be a viable option. Low doc home loans are specifically designed for these individuals, and are perfect for self-employed people and other non-traditional employees. However, you’ll need to show alternative sources of income, such as BAS statements. If you don’t want to show proof of income, a low doc loan may not be the best choice.
If you’re a self-employed or sole trader, it may be difficult to get a low doc home loan. Some lenders will require you to provide some financial records to qualify for their products, but they may charge a higher interest rate compared to a traditional loan. Regardless of your situation, a mortgage broker can provide tailored options based on your needs.
Non-conforming loans are more risky for the lender. Because they are not backed by government guarantees, they are more expensive to make. If a borrower defaults on a jumbo loan, the lender takes a huge hit. Therefore, jumbo loans require higher down payments and six months of cash reserve. So, you may want to avoid a non-conforming loan if your income is low or your credit score is low.