Hi everyone , a quick introduction.
My name's Brad , 27 , married with 2 kids.
We are currently saving a deposit for our first IP but our credit history has had problems. My wife's shows 2 PAID defaults to phone company's all under $1000 from a few years back and my credit file shows 1 PAIDdefault to the Commonwealth bank from a couple of years back.
We rent for $360.00 per week and earn $90,000 gross per year between us. We have saved $15,000 over 9 months and are debt free besides a $5000 car loan which we have been repaying without fault.
My question is whether we have any hope of obtaining a loan for an investment property in or around Frankston around the $220,000 mark.
I guess I'm trying to get an opinion before we apply as we know it looks bad on your file if you have been rejected from a home loan.
Any insight or opinions would be greatly appreciated !!Thank you ,
BradHi Brad,
With so many defaults within 5years i highly doubt you will get finance through the big banks especially if you need to use Mortgage insurance.
Hi Brad,
I use to work for a non-conforming lender previously. Providing all the defaults were listed more than 2 years ago you may have a chance with Pepper Homeloans 1800 737 737. Maximum Lend is 85%.
Full Income Documentation Loan (Full Doc)
1. No limit on the number of debts that can be consolidated
2. Adverse credit (paid or unpaid) registered over 24 months prior to application is considered
3. Finance available for a variety of business purposes including payment of ATO debts
4. No Lenders Mortgage Insurance (LMI).
The current rate with Pepper is not attractive and certainly would suggest going that route.
You wont get finance with any of the majors unfortunately at normal rates although oen of the majors does have a non conforming arm which may look at the deal.
At a 90% lvr i think the deal would be doable with a non bank lender at sensible rates.
Richard Taylor | Australia's leading private lender
Hi Brad,
Another factor you might need to look at is the deposit and costs. With stamp duty and the minimum of 5% deposit, you would have to have around the $21k mark to even look at a loan. Noting that with the defaults you mention, you will probably need at least 105 deposit so looking around $22k plus the costs.
Glen
Thanks everyone for your replies.
I guess my best option here is to save a bit more deposit , look for a non conforming loan and hopefully when I've built a better credit file I can re finance.
Qlds007, is it possible for you to give me the name of the lender you wrote about who does the non conforming finance ?Thank you,
Brad
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