qualifying for a home loan (help needed)

Hi

Its good to start planning now.

The bigger the deposit the better. Generally 5% is needed plus assume another 5% for stamp duty and other costs. But there are also a few No Deposit home loans out there now (St George, Westpac).

You will need permanent employment. Contracting is not so good (for getting a loan anyway). generally they want 3 months employment.

Savings history is generally 3-6 months with 3-5% saved, but there are loans without this requirement.

These days no guarrantors are needed.

Terryw
Discover Home Loans
Parramatta
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Hi

A couple of lenders offer 106% loans at a slightly higher interest rate although this might get you to your goal even quicker.

Most of these loans are post code restricted so if you have any area in mind I would be happy to check for you.

On the question of the smaller units <50 Sq M yes you can obtain finance on these but anything over 95% will be harder.

Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]

hi hiphopsupamix
couple of out of the box ideas.
1. organise a company and a trust,clean company from day one the company organises the property, lend the deposit to the company you as an employee of the company gets a low or no doc loan ( make sure you can cover the loan repayments)
2. if not find a property that you can rent out to like minded individuals and they can rent the property off you and I’m not telling you were to live.
get an off set account attached to the loan and throw the excess money in it so you can use it latter if need be.
try and use vendor finance to purchase as this will bring down the amount required and will put you under the mortgage insurance.
private lending is good for quick turn around projects 2 years max but norm lending is better for long term lending.
you can get 100% lending organised without mortgage insurance and normal lending it just takes a little creative pen work.
finance is easy its paying for it that is where the work comes in.

you haven’t given me enough info to give you more help put if single and 26, I would be looking at a reno with a couple of mate and flogging it off make sure you purchase in one name as you will loose the fhog for the others if they are on the title so you need to draw up a deed of agreement between you all.
sorry to say this but there is more then a hundred ways to skin that cat and some you can skin the cat and don’t have to kill it.
Its all pen work talk to a broker and if not happy post again.
as for the unit size don’t go under 50sq for the price you will have headaches latter and you don’t need it foe the first property its a buyers markets so you should be able to get better value and as a second or third, yes they can be good depending on where they are and lots of other factors.

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hi eeshole
Its all in the way you negotiate the deal in the first place here is a couple of example all that will give you the same result.
1. house 100 k
80 % lend is 80k but if you agree to get the price to 125k and get a 20% lend then the house @ 80% is 100k.
2. same as above and you get a discount for paying early
3. you do a deal where the owner gets 80k from the bank and you pay off the 20k over 5 years@ 4% rate
4. you option the house for 4 month put in a kitchen and bathroom then revalue (with nab my favouriteas they use there own managers to value property and are a little more adjustable on there valuations)and value at the 125 plus the reno costs.
5.This is the best but you need the money from the start buy the property out right reno it, then revalue with all reno included.
revaluation its a different section of the bank and the criterea is different for this post it wouldn’t work but it does for development sites so just thought i’d add it.
There are a couple of other ways but they are not for a open bulliten board and they aren’t something that I give out anyway they are in my little box information only available to me.
one area that has never been taped that I know of is the area of negotiating there is alot of money to be made in this area trouble is nobody wants to pay for it.
you will here people say a developer doesn’t make his money on the end product he makes it on the purchase and that is right because he negotiates a deal that makes that money.
and 100% lending is not the most inportant part, its a package deal that you put together.
try this one
bank forcloses on a site and is about to send to auction and then liquidate owners.
your job is to
1.get the site,
2. get the lend,
3. get all the paperwork together,
4.get a fixed price contract from a builder on 30 units,
5. get all around a table and do the deal and buy at 30% delow not the valuation report but the banks current owings and walk away making everyone happy ( because if everyone walks away happy the next deal is coming your way) and this deal is a 100% lend
time frame to do all this is 2 weeks

but this should help.
non of the above is advice and I would not us any of it to structure your investments on.

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If you want to get involved in some of the projects I’m involved in email to [email protected]

Hi Hiphop

With your scenario it is a lot harder to obtain mortage insurance on high density locations less than 50m in size through private lenders. I know when searching I have found between 50 – 65% LVR is the maximum for high density. Also, you must be careful if the property is a serviced apartment as you will fork out the extra and the lender will only advance on the value of the property and not the furniture.