Low Doc Loans For Small Businesses and Self-Employed Individuals
Low Doc Loans For Small Businesses
Low doc loans are available for small businesses and self-employed individuals. These loans are offered by lenders at rates similar to those of a traditional commercial loan. Low doc loans are a great alternative to loan sharks and are available at competitive rates. Learn more about low doc loans below. This article will cover some of the most common reasons why you should consider applying for one. Whether you have a high net worth or not is up to you.
A low doc loan will require you to have a substantial amount of income. This will generally require a higher deposit than a traditional loan. Most lenders require at least a 20% deposit. You will also need to provide income verification, such as an accountant letter, a bank statement, or a GST registered ABN. Some lenders are more lenient than others when it comes to the ABN requirement. The income to asset ratio must be a minimum of 2:1. If you do not have a high enough income to qualify for a low doc loan, you will need to provide it.
Many self-employed people are too busy running their business to produce accurate income statements. They may not have up-to-date financial statements, either. They may have a complicated financial affairs that are designed to minimize their tax burden. Low doc loans are a better option for these borrowers. If you have a steady income and assets, these loans can be a good option. However, you should consider the high cost of low doc home loans before applying.
Low Doc Loans For Small Businesses and Self-Employed Individuals
Before applying for a low doc loan, you should consult your credit report and repayment history. A lender will be more likely to approve a loan with these factors. In addition to good credit, lenders will favor applicants with a reasonable income to asset ratio, and a property that is easy to sell. If you are self-employed, work out the costs in advance by using a loan calculator. If you’re self-employed, be sure to check the interest rates and the monthly repayments.
Self-employed people often have difficulty qualifying for a conventional loan because they don’t have documentation to support their income. Low doc loans for self-employed people provide an option. These loans allow self-employed people to get a mortgage without full docs. The best option is an online lender like Bluestone, which allows self-employed borrowers to apply for a loan without providing tax returns. You can compare interest rates and get pre-approved for a low doc loan online today.
Low doc home loans can have comparable interest rates to traditional mortgages. Lenders assess risk based on many factors, including the size of the deposit and supporting documentation. Interest rates are not the only thing that matters. So it’s important to compare rates before applying for a loc doc loan. You can also work with a mortgage broker to find a low doc loan that fits your financial situation. As many banks have restricted their low doc products, it’s important to compare prices with the competition to find the lowest rate available.
