Benefits of Low Doc Commercial Loans
If you’re looking for a commercial property loan but have limited financial documentation, you might be interested in a low doc commercial property loan. These loans allow self-employed people and professional investors to borrow money without having to provide financial documentation. Low Doc Commercial Loans are also generally more affordable, allowing you to borrow up to 80% of the purchase price of a commercial property. However, the loan’s purpose must be for a business purpose.
These loans are often priced on a Loan-to-Value Ratio (LVR). That means that while many lenders may say you can borrow up to 80% of the value of the property, most banks will only allow you to borrow up to 65% of its value. If you don’t have a steady source of income, however, a lease doc loan might be the best option. This type of loan is often easier to obtain than a traditional loan, and many commercial real estate investors find it difficult to obtain a conventional loan.
Low doc commercial property loans are available from a wide range of lenders, including major financial institutions and smaller lenders. These loans typically lend between 60% and 80% of the property value, and often require no income tax returns from the borrower. Some lenders only require a bank account or a bare minimum income statement, while others will verify your income by requiring a supporting letter from your accountant. Self-employed individuals with an active ABN or company can also take advantage of these loans.
Best Option of Low Doc Commercial Loans
Generally, commercial property loans with a specialised security property are more difficult to sell and tend to depreciate over time. Low doc commercial property loans, on the other hand, have much longer terms and often have lower interest rates. However, they usually require a larger deposit and annual reviews, while small commercial property loans with regular properties are set and forget facilities. For this reason, it is important to understand how low doc commercial property loans work before you apply.
When applying for a no doc commercial property loan, you need to have a good credit history and sufficient liquid assets. This will give you an advantage over borrowers with lower credit scores. Stratton Equities and other companies provide NO DOC commercial property loans. If you’re looking for a low doc commercial property loan, contact Stratton Equities today to learn more about their loan programs. These companies also offer a competitive no doc commercial property loan.
When applying for a low doc commercial property loan, you should have a reasonable amount of equity in the property. You should own at least 50% of the building. If you’re looking to invest in a rental property, you might consider an investment property loan instead. However, you should know that a low doc commercial property loan isn’t suitable for all situations. A smaller business should be occupied by at least 51% of the building.