No Doc Asset Loan

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susanne
Posts: 1
Joined: Mon Aug 31, 2009 2:14 pm

No Doc Asset Loan

Post by susanne »

I have a block of land worth approx. $180,000 with no debt, that I wish to borrow approx. $280,000 to build a house on it. Would this qualify for a No Doc - 60% asset lend??

Thanks in advance,

Sue

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: No Doc Asset Loan

Post by Otto Dargan »

Hi Sue,

I'll assume that the construction will cost $280,000, that you will be hiring a builder to do the construction for you and that your credit history is clear. If this is the case then lenders would view your situation as follows:

* $180,000 + $280,000 = $460,000. This is what the valuation would likely be.
* $280,000 is 61% of $460,000.
* For a 60% No Doc you could likely borrow $276,000.

Just to let you know No Doc loans are quite expensive. If you are borrowing 60% we can likely get you to qualify for a Low Doc loan instead which is quite similar to most No Doc loans and is significantly cheaper.

There are some other aspects that the lender will take into account:

* Your employment (PAYG or Self Employed or Other)
* Your income (You declare your income, no proof is required)
* The location of the property
* Your credit history

If you would like to find out more then please call us or enquire online.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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