Avoiding a Lo Doc – Ideas Please

One for the Finance Gurus

I have been investing in property for a number of years, bought and sold and held a few and never had any problems obtaining loans, normally 90% – 95% LVR, as I was an employee. I have been self employed now for about a year and find that I have to apply for lo doc loans.

Now as you are all well aware the lo doc scenario at the moment is not great thus we can no only borrow up to 80% which doesn't work for us as all our money is currently tied up in 2 supdivisions and we can't redraw any equity until they are completed.

Yet we have just found a great little reno that we want to purchase so here is my idea. I am the sole director of my company and my wife does the books as an employee, so essentially we give her a wage. Could my wife be the main applicant on the loan thus securing a main stream loan at 90 – 95% rather than a lo doc loan and I would only be classed as the second applicant?

Your thoughts on this would be great appreciated.

Cheers

Delboy