If you have a construction company and need some finance for your ongoing projects then you can apply for the low doc construction finance. It may happen that you have started your dream construction project and in the middle of your project, you need some capital amounts for completing the rest of the project. In this case, you can go for the low doc construction finance and you can approach your bankers and private lenders for financial assistance.
 |
| Low Doc Construction Finance |
This type of funding option is suitable for the one who has lacks proper documentation to prove the income. Lenders and banks will require tax returns and your financial statement to finance your property. If you do not have proper documents or a bad credit score then you can apply for the low doc construction finance. However, this finance is a collateral loan and you need to mortgage some of your assets to avail such a loan. The lenders or the banks can take your ongoing construction projects as collateral and they can provide you with the loan on the basis of the value of your assets.
How would you choose the low doc construction finance?
Go through the executive summary of the commercial property loan package. Through the summary, you can know about the project and learn its description. The loan package must state the project principles and the resume of a general contractor. So, it must state the resume of the one who holds authority. It is important for one applicant to be self-employed. You can search the low doc construction finance online and you can fill up the online loan application for such finance.
Then you can compare the rate of interest, processing charges and other hidden charges of the lenders and choose the best low doc loan for your company. Some lenders can offer you a pre-payment or part-payment facility and you can easily pay a large sum amount within the loan tenure to reduce the rate of interest. For more details, you can contact your nearest lenders or banks, and they will assist you to choose the best loa doc loan.
The documents required for low doc loan
The lender will ask you to submit certain documents at least. They are as follows:
- Business Activity Statement
- letter from the Accountant
- Income declaration
- Trading Account displaying the income
Owner builder loan is that kind of loan which eliminates the need for finding a licensed builder. Most of the lenders and banks do not offer owner builder loan. Then, the lenders who offer owner builder loan have set stringent approval requirements. Several lenders check the credit score of the borrower but some lenders do not check it. To get good deals, you should improve your credit score. Pay your credit card bills and other bills. You may get approval for this kind of loan from a realtor, builder or even loan officer. Approval will come only after the lender calculates your income and assesses your repayment capability.
 |
| Low Doc Construction Finance |
How long it takes to gain approval?
After you have submitted the application online, you must wait for the lender to call you. As the process is pretty complicated, it may even take few weeks. If you can present exact information on your tax return, loan approval will come more easily. But do not apply to several companies at a time and always compare some lenders and then choose the best lenders for your low doc loan.
The financial constraint may come in the way of building your dream home or commercial property. To construct the unit comfortably and easily, you may look for a low doc construction loan. Low documentation construction loan may be short term or long term loan depending on your needs. Check with the loan providers online and compare the rates.
No comments:
Post a Comment