Lo Doc stands for “Low Documentation” loans and are available for self employed people to either purchase a property or refinance a property.
They came about because self employed people often have complex business structures and paperwork or haven’t completed their tax returns or, the business income has been inconsistent over the past few years.
Lo Doc loans use other forms of paperwork instead of tax returns to ascertain an acceptable income figure.
The paperwork requirements vary from lender to lender but will usually be a declaration by the borrower along with a combination of one or more of the following:
- Last 12 months BAS;
- Most recent 6 months business bank statements;
- Letter from your accountant confirming the business income
Some of these lenders will accept borrowers whose businesses that have trading for less than two years, and a few will even accept borrowers whose businesses have only been trading 6 months!
But they’re all done on a case by case scenario and other lending assessment rules can apply.
Lo doc loans can go up to 85% of the value of the property for Purchases (not including fees and charges), and 80% for refinances (not including fees and charges).
Some of these lenders will accept people with bad credit, ex-bankrupts and other credit issues for both loans to purchase a property and refinance/debt consolidations.
They can also be used by home owners who have equity in their property to refinance and pay out tax debts!
So what are you waiting for? Call now on 1300 139 883 or email using the form below and let’s get the ball rolling!