i am curious as to whether it is worth my time trying to apply for a home loan.
my husband and i earn approx 115,000 per year gross. i have an excellent credit rating but my husband is paying off a car accident and also an outstanding loan.
i have cleared all my credit card debt, but have a personal loan of approx 26,000.
By the time our lease expires i expect to have approx 8,000 in the bank plus first home buyers.
My grandparents own a home outright and also own a block of land valued at about 350,000 which they are willing to put up as guarantor. we were looking at borrowing approx 420,000 including consolidation of my personal loan.
thanks
110% homeloan with guarantor
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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Re: 110% homeloan with guarantor
Hi Rebecca,
Yes we have a lender that can lend up to 110% of the purchase price, can accept debt consolidation, can accept grandparents as guarantors (most only accept parents) and can allow guarantors that are no longer working.
The main question is if your husbands credit history is ok or not. Often we find that debts from car accidents have been to court and there are sometimes court judgements on the person's credit file. Do you know if his history is clear?
Yes we have a lender that can lend up to 110% of the purchase price, can accept debt consolidation, can accept grandparents as guarantors (most only accept parents) and can allow guarantors that are no longer working.
The main question is if your husbands credit history is ok or not. Often we find that debts from car accidents have been to court and there are sometimes court judgements on the person's credit file. Do you know if his history is clear?
Re: 110% homeloan with guarantor
no he doesnt have a great credit history....I was hoping that this might be overlooked as we have a guarantor?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: 110% homeloan with guarantor
Unfortunately they will not overlook his credit history. There are no non-conforming lenders that do guarantor loans. We have one lender that can consider some minor credit impairment. How many defaults does he have? When were they listed? How much are they for? Are they all paid?
Re: 110% homeloan with guarantor
He has 3 defaults, a credit card for 3,000 which was paid last september, a personal loan that had 4, 500 remaining which we are paying next month in full and a judgment from a car accident currently being paid at 200 a month the last payment will be made in April. we are looking to purchase in April or May.
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: 110% homeloan with guarantor
Unfortunately Rebecca with that many defaults on his credit file he will not be able to get a guarantor loan. The maximum that is accepted is usually one default up to $1,000 that has been paid more than 6 months ago. Defaults are a grey area and in some cases we can get a loan for someone with a default up to $5,000 if there is a very good reason and evidence to back it up.
Even if a default is paid it remains on your credit file for 5 years from when it was listed. For the most part lenders don't care what the reason for the default was, unless there is evidence to back up the reason for the default.
My recommendation is for you to pay off your debts and then try to save a minimum 10%, ideally 20% deposit OR for you to buy in your name only. This will reduce the amount you can borrow however it will mean you can buy soon.
Even if a default is paid it remains on your credit file for 5 years from when it was listed. For the most part lenders don't care what the reason for the default was, unless there is evidence to back up the reason for the default.
My recommendation is for you to pay off your debts and then try to save a minimum 10%, ideally 20% deposit OR for you to buy in your name only. This will reduce the amount you can borrow however it will mean you can buy soon.