Low-Doc construction loan

Low-doc construction loans are designed for self-employed individuals and business owners who may not have the traditional income documentation required for a standard home loan. Instead of standard income verification, alternative documents such as self-declarations, bank statements, and accountants' letters may be used. In some cases, lenders may capitalize interest based on an exit strategy (e.g., property sale) once construction is finished.

Are low-doc construction loans available from all lenders?

No, not all lenders provide low-doc construction loans. While many lenders in Australia offer construction loans, fewer provide low-doc options. This is a specialized area of lending. Working with a mortgage broker who specializes in low-doc construction loans can save you time and avoid unnecessary disappointment.

How do low-doc construction loans compare to traditional construction loans?

Low-doc construction loans function similarly to standard construction loans once approved. The borrower is expected to contribute to the construction upfront, with the lender making subsequent payments. Typically, a certificate of occupancy is needed before the final payment to the builder is made.

Pros and cons of low-doc construction loans

The primary benefit of low-doc construction loans is that they provide funding for construction to individuals who might not qualify for traditional loans. However, they often come with higher interest rates, additional fees, and may require a larger deposit.

Why should you choose Arya Finance for your low-doc construction loan?

For over a decade, Arya Finance has been assisting self-employed individuals, business owners, and developers in Australia to construct properties. Our team has a deep understanding of complex construction finance and strong connections with lenders who specialize in this area. Let one of our experienced low-doc construction mortgage brokers help you get started on your next property development today.