You could get your mortgage approved with some specialist lenders even if you have defaults on your credit file. It all depends on how old the defaults are, the total number and the dollar value of the defaults.
In your case, since your husband has already paid off the default, lenders might allow you to borrow 80% of the property value, if there is good evidence of the cause of the default.
To increase your chances of approval:
- Provide a default explanation letter to back up the explanation of the cause of the default.
- Save a large deposit if it is possible of at least 10-20% of the purchase price.
- Ensure that all paid defaults are marked as paid on your credit file.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a bad credit home loan.
Cheers,