What are our options?
Posted: Wed Feb 17, 2010 12:10 pm
Hi there,
Wonder if you could shed some light on our situation.
My husband and I bought our first property 5 years ago. Since then, we have refinanced our loan to pay off a car loan that hubby had when he was still a bachelor . With the current market, i do not believe we have any equity in our current property. Fast forward five years, hubby and I now have 3 young children and have outgrown our house and wish to upgrade.
Here are some rough figures for you to work with:
- Our combined salary is $110k
- Our current loan amount is $365k (i believe in the current market, our home is work about $330k)
- We have a car loan with another financial institution (seperate from our home loan), and the loan amount is $43k
- Basically, total debt of about $410k
Having 3 kids in the last 5 years, i have had a total of two years Maternity Leave. We were lucky enough to have enough savings to last as while living on one income. I have recently returned to full time work, however, in the last 12 months we have had to touch our "savings" now and again for unexpected expenses. The bottom line is, we do not have 10% or even 5% genuine savings because of this. We have never defaulted on our loan and we dont have any bad credit records.
Our parents own their house outright. They are willing to be our gaurantor should we need to borrow equity from their home. My question is, is this do-able? Are there lenders out there that would take our situation and consider it? I am just worried, that with no genuine deposit or savings, we wont be able to purchase our much wanted new home.
Can you shed some light on what would be the best possible solution and what can we do to get out of our "rut", for a lack of a better word? Would we be able to use our parents fully owned home as equity and use them as gaurantors, seeing as we are no long first home buyers?
Thanks so much in advance!
Regards
Wonder if you could shed some light on our situation.
My husband and I bought our first property 5 years ago. Since then, we have refinanced our loan to pay off a car loan that hubby had when he was still a bachelor . With the current market, i do not believe we have any equity in our current property. Fast forward five years, hubby and I now have 3 young children and have outgrown our house and wish to upgrade.
Here are some rough figures for you to work with:
- Our combined salary is $110k
- Our current loan amount is $365k (i believe in the current market, our home is work about $330k)
- We have a car loan with another financial institution (seperate from our home loan), and the loan amount is $43k
- Basically, total debt of about $410k
Having 3 kids in the last 5 years, i have had a total of two years Maternity Leave. We were lucky enough to have enough savings to last as while living on one income. I have recently returned to full time work, however, in the last 12 months we have had to touch our "savings" now and again for unexpected expenses. The bottom line is, we do not have 10% or even 5% genuine savings because of this. We have never defaulted on our loan and we dont have any bad credit records.
Our parents own their house outright. They are willing to be our gaurantor should we need to borrow equity from their home. My question is, is this do-able? Are there lenders out there that would take our situation and consider it? I am just worried, that with no genuine deposit or savings, we wont be able to purchase our much wanted new home.
Can you shed some light on what would be the best possible solution and what can we do to get out of our "rut", for a lack of a better word? Would we be able to use our parents fully owned home as equity and use them as gaurantors, seeing as we are no long first home buyers?
Thanks so much in advance!
Regards