Which Lender wouldn't have a prob with HIA orders Low Doc??

Hey SSer's,

Anyone been able to successfully get a Low Doc 80 (No BAS's or Trading Statements) for a purchase of a house (metro area) with a HIA order by any chance???

Purchase Price $400K.....

Looking for 80%LVR of purchase price (realise banks can do 80%LVR on land value)?????

Couple of Lenders seem to have real issue with this HIA order...
Whilst i respect Pete i am not convinced that under NCCP you could get away without BAS or Trading Statements post July 1.

Lenders arent covered until Jan 1 2010 but Brokers and non bank lenders certainly are.
Got a hold of this HIA order and its silly really.

Its got about 20 items on there (internal and external) of apparent 'defects' but if you actually go through the list its things that you would typically find 'wrong' in any old house.

-boundary fencing requires repair (front pillar insecure)
-eaves linings require repair
-faulty electrical installation (on rear eaves)
-paved areas require repair
-roof gutter require repair
-celing requires repair (mildew forming)
-insect screen not provided to window
-smoke alarms not fitted
-walls fractured and cracking
-wash trough not provided

nothing structural from what i can see but lots of little small things...but house is being bought as a 'reno' project so one would expect it to not be perfect!

the HIA order was written from Housing SA (Housing Trust)...not sure how they come into this or whether HIA orders are normally written by them (i thought it was COuncil) but basically what happened was the current owner wanted to increase the rent and the tenant wasn't happy so he complained and an inspection was done presumably by Housing SA and the HIA order was the result.

Any thoughts??
Generally speaking, low doc is a policy where the lender is taking a stated income, without as much verification as a normal loan. as such, they require everything else, like credit history, A & L, the state of the security to be spot on.

the security here is not spot on, and if that is all that it is, one way to overcome it would be to provide a fixed price quote to fix all of the things mentioned on the report, and or see if you can negotiate early access during settlement to complete them.
I suspect its more than the report that is stopping the lender/lmi provider, perhaps a lack of comparable sales, or they have simply chosen to pass on this deal....
Recently had one of these. - 3 banks would not even touch it with a $3500 quote to repair. The Order had to be lifted before settlement and although the repairs were easy (one spot of salt damp) it takes 3 months to dry and then HIA will inspect and lift. However I did this deal with ANZ who just take the contract price and didn't do a val. They will do this for 60% lo doc LVR not 80%. I would have thought HIA was registered on the title and was told this by them, but this is not the case.

Your lo-doc problem is another issue.
ANZ recently changed thier LO doc policy, everything needs a full val. Bankwest used to take contract price low doc under certain circumstances, not sure if they still can, that was pre gfc.
We have a lo-doc 80 (we wouldn't be able to get this now - it all changed soon after we got the loan) on a house with an EXTREMELY extensive HIA order, through the CBA.

Our order listed things like no oven, holes in the floor, no cold water, no lights, no power points, heaps of other wiring and plumbing issues, no laundry trough, poor fencing, bad concreting outside, plus two pages of other trivial stuff. We've fixed it all except the salt damp (which is in every 100+ year old house and is too expensive for us to fix) and the bathroom door latch.

Irritating thing is we bought it as a lo-doc at 62% with no valuation and had to pay LMI, then they valued it at over 30% more than we paid for it (after we ripped out the kitchen and some of the floors) a few weeks later when we got a topup loan to renovate. Which took us to ... 62% again, and a second dose of LMI.

What we do with this house longterm is going to rely heavily on what rent we're allowed to charge that the HIA order reassessment comes back with.
thanks for the replies.

yes sooo frustrating how trivial all the apparent 'defects' are...even having trouble getting it as a land loan only...

will keep pursuing and will see how we go
Whilst i respect Pete i am not convinced that under NCCP you could get away without BAS or Trading Statements post July 1.

Lenders arent covered until Jan 1 2010 but Brokers and non bank lenders certainly are.

For the most part I agree. If found a few mortgage managers still willing to look at them, but I suspect they'll dry up fairly quickly.

I've got a deal going through at the moment which should be approved shortly. They haven't flagged anything yet and it was conditionally approved post July 1. It's passed LMI as well. Fingers crossed.
Hi Pete

There are still the odd Bank lender that doesnt require them my point i guess was how as a Broker can we do the loan when we have to comply with NCCP yet the Bank doesnt.

Spoke to a client who wanted a Lodoc 80 loan at the start of the week and couldnt provide BAS or Bank Statements. I couldnt do however could have charged him a fee and told him which Bank would do it and then he could have gone and applied direct .

To me it is ridiculous that a Bank johnny can flout the legislation for 6 months using a stated income but you and I have to make additional verification of the clients income on our Fact Find.