Non-Conforming Home Loans –Ideal for Buyers with Bad Credit History |
Posted: July 5, 2014 |
The most damaging thing that you can do is to have a default history listed in your credit file. Most lenders consider default history as a red flag for approval. But, don’t worry. You have an alternative in the name of “Non-Conforming Home Loans.” What is a Non-Conforming Home Loan? Non-conforming home loans are the same as regular home loans, and they include many of the same features. But, owing to the extra risk in lending to a person with bad credit history, you will most likely have to pay an increased interest rate on bad credit home loans. When you apply for non-conforming home loan with a lender, be open and transparent. The lender will request you to provide an explanation regarding each entry appearing in your credit file. So, don’t try and hide anything. If you make the lender suspicious, your application may be declined. Criteria for Approval on Non-Conforming Home Loans Non-conforming home loans are only available if you can meet the following criteria: >> No Current Bankruptcy You should not be bankrupt or taking advantage of a part 9 creditor agreement within the Bankruptcy Act. If you are in bankruptcy, you can apply for a home loan with discharged bankruptcy. >> Minimum Deposit You need to put together a minimum deposit of 20 per cent of the home loan amount. It doesn’t matter if you have a large salary or you have a guarantor. 20 per cent deposit is a must. If you are opting for refinancing, it should be 20 percent equity in the property. Remember that the maximum of home loan with default history is 80 percent of the property value. But, this number can increase if you are eligible for any First Home Owner Grant (FHOG). >> Additional Fees You will be required to find money to pay any stamp duty and other costs outside of the loan allocation funds. >> Sufficient Income You will need to prove that you have sufficient ongoing income to get non-conforming home loan. Usually, people on pensions or those who are unemployed cannot obtain a non-conforming home loan. >> Declaration of Debt Any outstanding debts whether in default or otherwise must be declared and be fully consolidated into your new mortgage and be fully paid out on settlement. So, these are the criteria for approval on non-conforming home loans. Remember them before you apply with any lender. Quick approval will be yours when fulfil them. Obtaining non-conforming home loan is a big financial decision. Seek expert advice from Singh Finance and get easy-on-the-wallet home loan solution. The brokerage firm has a team of experts who have helped numerous home buyers with bad credit history. Please call on 0424 190 908 or enquire online now.
|
|||||||||||||||||||||||||||||||||||||||||||
|