Low doc vacant land loans
Low doc vacant land loans are used to secure land on a stand-alone basis without showing financials. Vacant land loans are generally treated similar to residential loans, however only a few lenders offer low doc vacant land loans.
Do lenders have a minimum time they wish a client to build on vacant land?
Some lenders accept low doc vacant land loans conditioned on the intent to construct on this land. In these cases, lenders put a time factor in place to govern how long they will keep this loan on their loan book before requesting the borrower either commence construction on the loan property or find another lender. This is usually between 6 to 12 months from settlement of the original land component loan.
In the case of low doc vacant land loans, there are some lenders who do not take vacant land as security and do not offer a construction loan under a low doc policy either.
Low Doc Vacant Land FAQ's
There are several major institutions who do not have a time restriction, and are also able to do the construction loan. The general construction loan policy would apply in these cases.
There are lenders who will lend on vacant land under low doc policy up to 80% LVR, and they will also lend the LMI cost on top. There are also lenders who will not lend more than 60% LVR on vacant land.
The maximum LVR for a low doc vacant land loan is 80% LVR generally. There is 1 lender in Australia which will also lend you up to 85% LVR for a low doc loan vacant land loan up to $400,000.
There are several lenders who will accept low doc vacant land loans without showing Business Activity Statements (BAS) but there are some lenders who require the BAS. Please also read low doc with BAS.
You can get a low doc vacant land loan using an accountants letter in support of your income declaration Please also read low doc with accountants letter.
Give one of our friendly brokers a call and we will explore all your options to find the right loan for you. Alternatively, send us an online enquiry and we will contact you!