80% Lo Docs for trusts ?

[Bushy]

Hi all,
Are 80% Lo Docs for trusts still around.

We are in prelim stage to develop one of our properties but need to know if an 80% Lo Doc for a Discretionary Trust is do-able before we put much time into running numbers for the development.

We need a 80% Lo Doc refinance to release equity, the property is held in our discretionary trust and we are the trustees. We then plan to use these funds as backup for the development of another property (held in our names not the Trust). The construction loan for this property will need to be a Lo Doc also. Thanks in advance for any replies

Cheers Bushy

 

[Rolf Latham]

Hiya Bushy

yes....................but

One would need to know a little bit more

Is a lo doc really needed though ?

ta
rolf

 

[Bushy]

Hi Rolf,
That was a quick reply, It would have to be lo doc, work is not continuous enough with one employer (Contracting industry ) and the last loan was a lodoc.

Cheers Bushy

 

[Rolf Latham]

We have just finished with a deal where the client was a PAYG contractor with irregular work.

2 years of tax rtns and assessment notices was enough to convince the lender for an 80 % lend.

Because the cost of money has come down a bit in recent times you may find that the fact that you needed a lo doc say 2 years ago, youd now pass ok.

If not then there would be a number of second tier lenders that will do the refi, but not many that will do the build.

Run your deal past a broker in detail and see what you can make fit. Until recently CBA and STG had no issues with a deal like yours, now CBA is a lite doc, and Stg wont do trusts on lo docs.

ta
rolf

 

[bawatkins]

Rolf is right, low doc for trusts and a refi is hard but options still exist, depends on how much cash out you want. If you can swing it as full doc you chances for cash out are much better.

 

[Bushy]

Thanks for your replies, will see how I go

Cheers Bushy