Low Doc Loans: a Great Opportunity for the Self Emplyed
Being self-employed is something a lot of people want to achieve in life. However, what most people don’t know about self-employment is that you’ll have to abide to a different set of rules, and you’ll have to put in extra paperwork for most things, like insurance, taxes, etc. One thing that you won’t need more paperwork for, however, are loans. Self-employed people are usually unable to provide all the documents required for a traditional loan, so a lot of loaners have strayed away from their path to accommodate the self-employed people with low doc loans.
When it comes to picking low doc loans instead of the standard loans, you need to keep in mind that they are especially designed for investors, self-employed and contract workers who cannot prove their high income to the bank, due to the constant reinvesting in their business, slow tax returns, and so on. What you’ll have to do though, is file a declaration (known as self-certification) that confirms you are indeed able to afford the loan. In addition, I’ll discuss some of the benefits of low doc loans, so you get a clearer picture of them.
The most important thing about them, is that you aren’t limited to a single choice. In fact, there are many types of low doc loans that will meet the needs of everyone who needs them. These loans are intended for the self-employed and investors, hence there is a wide range of options from fixed and variable rates and loaners can borrow you a great amount of money to meet their needs.
And even though they are extremely similar to the traditional mortgage loans, borrowers don’t have to reach an agreement for a product that doesn’t serve their needs, meaning – they have many other options to select from. They have a different low-to-value ration and different requirements depending on the longevity and effectiveness of your Australian Business Number.
Furthermore, there are also types of low doc loans that provide you the necessary funding for a purchase, refinance or construction of a commercial or residential property, even though you may find it difficult obtaining a specific loan due to poor credit. The chosen loaners company will take into account all of these factors and will give you the funding you need, which makes it ideal for those who cannot meet traditional loan requirements. And lastly, they will give you the opportunity to get the funds you need when there’s no other type of loan available.
