Who does 'stated income' lodocs?

RumpledElf

RumpledElf

We are still trying to get a loan for our new house. I don't get why it is such a slow process. We have two brokers (noone from here has offered their services), first said CBA does stated income but before she did anything CBA stopped doing them. Now this new guy has had our details for well over a month and just came back asking for all our BAS statements, which of course we don't have because a lot of our income comes from overseas from various sources (been there done that with CBA, they'll accept all our income sources for a fulldoc/lodoc EXCEPT that income). So, need a 60% lodoc that doesn't require BAS statements.

So who is left, or do we have to sell up and pay for this house in cash?

I don't care about interest rates at this point, we need about $75k, we have about $120k in equity, $50k in cash and existing debt of about $100k. So selling up and paying for the house in cash is a valid option and will leave us debt free, its just really awkward.

Of course, if anyone wants to buy a house for $175k that would rent for $200+ a week (HIA order applies - 110yo stone house with damp and cracking, funny that) I'm happy to sell.

And of course while I'm tying this the broker replies with "they've had a policy change so you probably won't need them" ... grrr @ brokers who sit on your info for so long the bank changes policy
 
Hello Elf

Well, I am prepared to 'offer my services' but as a long time Member of the Forum I have rarely, if ever, directly offered my services to another Member as I do not see the Forum as some sort of pool filled with prospective customers.

We are all here to share and share alike, not to prospect off each other.

Sorry if you are disappointed that all the Members who happen to be Brokers have not beaten a path to your door, clamouring 'Pick me! Pick me!'. From your posts yes, you are having a difficult time of it but I haven’t read any invitation for anyone to contact you with any alternatives

However, as you are currently working with another Broker it would seem only fair to let them continue with what they are doing, but if the trail peters out by all means post an Invitation to be contacted.

Just goes to show what a polite and respectful bunch we Brokers really are!

Cheers
Kristine
 
nicely done Kristine.
Elf, a loan of $75k will not pay a great deal to however writes it. Added to that the dificulties of a relocatable home, in a rural area, low doc without bas, its going to be very dificult if not impossible to find something.

Buy Kristine, or whoever your broker is, a bottle of wine before they start, and try and foist upon them an hourly rate fee for service as well.

I thought you would have been set once you were put in touch with the relocatable homes broker, sorry to hear they havent been enthusiastic.
 
Its silly isn't it? If you don't want half a million dollars at 90% fulldoc its hard. Maybe we should claim we're buying a new house and lie through our teeth - houses identical to the one we're building happily sell for $300k.

The broker that the builder recommended just sat on our paperwork for a month and a half and only got back to me today. You'd think he would have, you know, got us a LOAN in that time.

Meanwhile the local real estate agent keeps ringing wanting to show people through (she doesn't have our house listed but she did an appraisal) and we have to tell her no, we don't know when we're getting a new house, or a loan, or anything, and we're still waiting for the CBA complaints department to knock our complaint back too. And the bank balance keeps going up while we're waiting ...

We'd go fulldoc 60 but without the foreign income our combined annual household income is about $5k too low for the amount we need to build the house.
 
Hmm , rats , thought I was onto something there. I've got all the similar problems as RF and financings been such a pain that I've had to pass up unbelievable deals in the end.

Cheers
 
Broker eventually came through with it - seems ANZ still does them for under 60% and it was an 'administration error' asking for BAS statements - but I'm still a bit peeved that the broker took our paperwork, went on holiday for a month, put the paperwork in on Dec 23rd and now the builder is having issues with the council misplacing some paperwork so we're being delayed AGAIN while we wait for everyone at the council to come back from holidays and look in their filing cabinet for our sewage plans.

Making it hard to get a date so we can sell our old house. Wish we could have just got bridging finance - the new house is going to cost us $75k, and there's $100k in our current house that we get when we sell it. This is a lot of pain to go through for a loan that will be paid out in full within the first few weeks/months of taking it out :(

If there wasn't a dearth of rentals here and the ones that do exist costing $350 a week, I'd just sell and rent for a bit.
 
He came through , great stuff RF.
I had one take off on us last Christmas too . He did the app and then just took off for 21/2 wks without putting it in or saying another word. It was an urgent app' too but we had no idea what had happened .
Unfortunately not such a good outcome for us because thanks to him wasting that valuable 3 wks or so with leaving us in limbo, we lost the deal.

I hate financing and sometimes I think I should just get out of investing as you can't do a thing without it , yet I cringe at the thought of it these days.

Cheers
 
Getting finance is painful. We're hoping to avoid needing finance in one more deal's time. When we sell, there'll be enough cash to pay our mortgage down to $40k or so owing, and pick up a triple block down the road. Split it and put a new house on each block one at a time, even after CGT by the time the first one is sold the second and third we can do cash.

Quite looking forward to that. Hopefully noone else buys this block in the meantime, it has been for sale for 8 or 9 months now and the price is starting to drop. I suppose the upside of all these delays is ye old bank balance is going up fairly dramatically without this new house and the mortgage that goes with it. We're getting as much in interest as I used to get in rent on my last house :eek:
 
Nice one . Yep I wonder why some of the people here bother with what they're getting when they can do quite well just parking in a bank right now.

I hear ya , we're trying to do cash too and hopefully in similar time frames we'd be able to too with a bit of luck . My dad always said you never use your own money but this financing thing is just a f'n nightmare if you ask me. And , we can see what the deal can do but your forced to justify that to some of these fools when they have no bloody property idea which doubles the pain.
We bought one cash 2 yrs back , my God what a pleasure that was . I just put in my offer , they accepted , off it went to the old solic's and I paid for it . Tell you what RE it was absolute heaven .
That ones up for sale now and if it sells I can move on free of banks forever afterward hopefully as long as I stick within the old budget and do as I damn well please, pleeaaseee sell !

Cheers
 
You just have to pick the right person to rant at :)

Had the other set of in-laws over today. They own several IPs, much to the disgust of the other set of in-laws (who are living in a dated house on a 900sqm fully paid off subdivisible site in a suburb crawling with triplex townhouse developments selling for $600k per townhouse). They saw our house when it was half-finished and almost keeled over at how nice it is now. Our house may be small but damn its nice.

The step-MIL commented that we probably have more equity than the (mortgaged to the hilt) SIL has in Adelaide. She strongly advised us not to sell, but then she heard how much we owe (not very much) and said oh, right, if you're going to develop again soon its not a problem, just don't stop now :) She called us accidental developers.

They were suitably impressed at the block down the street we've been eying off, and jokingly made some comment that we should just buy the brand new 4br transportable for sale on the next street. That one is clearly unfinished, extremely low spec, unlandscaped, unfenced, and $240k! Just as well they were joking!

Best thing is, they offered to spot us a few $1000 if we fall a bit short of our connection fees, and we can just pay them back later :D
 
And ANZ gets back to us requiring FULL proof of income because of the new 1st January rule changes, despite us putting the application in in November.

Coming back down to - it looks like it is impossible to get a loan for this house unless we go through someone that isn't affected by the new ASIC rule changes that came in this year.

Problem is when I discussed it with CBA a while back and they point blank wouldn't ACCEPT our income sources for a full-doc, and now lo-doc loans don't exist any more, how is anyone self-employed with non-BAS income supposed to get a loan?
 
The idea of BAS is to confirm the client has Australian income and a legitimate business trading in australia with decent turnover (as opposed to a work at home / hobby business). Your scenario would have always been out of policy if low doc or full doc. Brokers might be trying to help you dodge the system but the banks are not dumb (they use to turn a blind eye but can't do that anymore).

The only option I can see is to buy in a company and get a private funder. I say his because loans to companies are not regulated by the new legislation.

If you consider this option speak to your accountant first.
 
Actually our best option is to sell our current house and build the new one in cash and renegotiate with the builder from subject to finance to subject to sale.

Why won't Australian banks accept international income? All our income is good for a fulldoc except the international income. Which just happens to be necessary to scrape us over the servicability line by their critera, despite us having $1k a fortnight spare money after expenses (which means it would take 36 months to save for this house in a worst case scenario). You have to prove your income but there seems no obligation to prove your expenses, unless there's something else in the new ASIC rules that obliges the banks to use real living expenses not calculated ones, in which case we could walk into any bank with full proof of everything and get a fulldoc 80.

I mean really, we're looking at $1200 a month repayments, of which $800-$1000 (I'm waiting on a rent appraisal) is going to be covered by rent if we don't sell - raise that to $1200 clear if we rent the house furnished. Its amazing the hoops you need to jump through to prove that you can afford a house.

I'd sell and rent but 4br houses here rent for $330-$400 a week and that's a bit more than the $150 a week we currently pay.
 
Talking with a few banks, bottom line is since 1st Jan we just Can't Get A Loan despite being able to prove every damn cent we earn.

One lender was fine with some of our income sources (on closer inspection it seems most banks will only accept around half of what we earn as income) but wouldn't accept a rental appraisal, as we are living in our old house and thus don't get rent for it. They wouldn't accept that we can rent it out the instant they give us money for the new house, nor that the house is up for sale as of Friday. They basically insisted we move out and rent - you don't need to pay the morgage for up to 9 months on a construction loan while you rent but if you own you are expected to service both at once. You think any landlord in an extremely tight rental area is going to rent a house to a family of five + cat + home business for 8 weeks? Not a chance.

I'm getting our building contract changed and we're going to pay cash for the house. All good with the builder as long as our settlement is longer than 8 weeks after it goes unconditional.

Obviously the line "you can only get a loan if you don't need it" doesn't apply anymore.

This "8 weeks to build a house" thing is going to stretch out for as long as it takes to sell our old house. I'm thiiiiiiiiiiiiiiiiiis close to not having to share a bedroom with kids :mad:
 
Yeah your not kiddin .

Some of the deals I've taken to brokers yet been knocked back is bloody mind boggling.
One last xmas , we worked on it right through instead of having holidays for another 3 mths after that, it literally would have set us up for life in one very cheap and fowl swoop .
My wife automatically got $400 extra pm on her wage in extra travel ,another 300pm on living in it instead of the temp rental and rent we've been in while looking in savings.
The house was literally 1/2 price and this wasn't pie in the sky stuff either it literally was so plus a reno there would have been an instant 60-70k equity , 120 odd after reno.
I could work from home saving a further 400pm .
I had storage units planned which I'd pay for myself adding a good business to the property plus another 100k min in value and developing into built in 1800pm. extra income.
Plus , it was also 1ac but town zoning , with a back entrance as well as the main at front , it still had plenty of scop to build also build a rental .
The numbers were so good that I really could not actually work out just how cash positive the damn place would have been in two yrs time and it would have pretty well supported us all once it was set up .

Tried 1/2 a dozen brokers , worked on it for 4 mths . Lost the bloody deal.

So frustrating
 
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Ahh yeah and plus , I also even offered another place I own outright , valued at more than the loan we were after , as security .

Unbelievable
 
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