Vacant land low doc loan with bad credit
Am I eligible for a vacant land low doc loan with bad credit?
You could get a low doc vacant land loan with bad credit if the following criteria are met:
- An active Australian Business Number (ABN) > 6 months
- Limited proof of your income
- Meeting credit criteria and reasonable explanation for your credit history
- Meeting the LVR requirement
What type of bad credits are accepted for a low doc vacant land loan?
- Defaults < $2000 (unlimited)
- Defaults >2 years (unlimited)
- Max of 5 Defaults (>$2000 and <2years)
- Max 2 Mortgage Arrears (Within last 6 months)
- Unsecured debt arrears
- Bankruptcy part IX/X (discharged 1 day)
- Bankruptcy (discharged > 2 years)
Is the interest rate higher on a low doc vacant land loan with bad credit?
The lenders that offer a vacant land low doc loan with bad credit are non-conforming lenders. Non-conforming loan is a loan that fails to meet bank criteria for funding. Hence, they charge higher interest rates to compensate for the higher risk involved.
Investment vacant land loans usually have slightly higher rates than owner-occupied vacant lands.
What situation will I not get accepted for a low doc vacant land loan with bad credit?
Any situation which does not meet the credit criteria above may get rejected. Also, if you do not give all the complete and correct information required, then the lender will decline the application.
Lenders who offer low doc vacant land loans with bad credit?
The lenders who offer vacant land low doc loan with bad credit are non-conforming lenders. The big banks will occasionally accept small defaults; generally, they will decline bad credit applicants.
Can I get a low doc vacant land loan if I have arrears or unpaid loan repayment?
Sometimes we forget to make payments on a loan/debt on time, or are in a bad financial position due to unforeseen circumstances which means we can’t make timely payments, hindering our credit score.
Lenders specialising in bad credit loans require you to explain your situation to understand your position. These lenders will give you a loan if you meet their criteria and are not a big risk. You will be required to give all the details on the situation, any missing information may result in a decline on your loan application by the lender.
At Mortgage Providers, we have access to many lenders that offer low doc vacant land loan with bad credit. Our brokers know the policy differentiations of these different lenders and will ensure you will get the best possible rate. Call us to discuss your bad credit scenario and we will be glad to help.