Lo doc and No doc loans
What is a Lo Doc Loan?
The words Lo Doc and No Doc Loans go interchangeably. They are a loan or mortgage product where minimal documents need to be provided.
They differ from your typical bank funding where banks require last 2 years tax returns, financials and a squeaky clean credit history.
A no doc loan on the other hand, has fewer hurdles to jump over and the lender puts more emphasis on the value or equity in the security property which secures the loans.
Who can use a no doc or low doc loan?
These loans are usually used for the short term. They can assist businesses or individuals who don’t have their financials completed and need to act quickly. The lender can consider other forms of income or your exit strategy in providing you with a loan.
The major benefits of a Lo Doc Loan:-
- Non conforming borrowers are allowed access to finance;
- Borrowers can access the equity in their property;
- Loans can be settled in days so there is no waiting on bank processing delays;
- You can exit the loan once your exit strategy is implemented or you can refinance to a conforming lender when you financials are completed.
Lo doc/ no doc loans are available by first mortgage or second mortgage security.
For a first mortgage, lenders will typically lend to 65% of the security value. Rates vary depending on the loan however are usually between 11% and 13% per annum.
For a second mortgage, lenders will typically lend to 75% of the security value. Rates vary from 2%to 3% per month.
Easy Settle Finance is a leader in providing lo doc and no doc loans. Call us now on 1300 730 267 to discuss your Financing today. Or complete our Quick Enquiry form and we’ll call you back shortly.
Note responsible lending applies to loans regulated by the National Credit Code.