Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
What Is A Bad Credit Home Loan
They are specifically designed for people who have had trouble getting finance in the past due to bad credit history. There are many reasons why someone may have a poor credit rating, including:
– defaulting on loan repayments
– having a court judgment against them
– being declared bankrupt.
About A Credit Profile
How Much Can I Borrow
Common Cases That May Prevent Your Qualifying For A Home Loan
The challenge you face is convincing the lending institution that you can sufficiently meet their repayment conditions. This is where a mortgage broker can help. A good mortgage broker will have a wide range of lenders they work with. This gives them the ability to find the best home loan for your situation, even if you have bad credit. They’ll also be able to provide guidance and support throughout the application process, increasing your chances of success. The following are some common issues people face when trying to qualify for home loans:
Bad Credit Score
Tax Debt Home Loan
A tax debt home loan is problematic because tax debts are considered priority debts. This means that the ATO can take action to recover the debt, which includes putting a charge on your property. This makes it difficult to sell or refinance. There are ways around this, such as by negotiating with the ATO to enter into a payment plan.
Business Financial Difficulties
Bad Lender Credit History
Can I Get A Home Loan With Bad A Credit In Melbourne?
How To Get Bad Credit Home Loans In Melbourne
In addition, when it comes to disability home loans in Melbourne, you want to make sure you’re getting the best possible deal. At Break Free Home Loans, we can help you find the right loan for your needs and make sure you get the most competitive interest rates. We understand the unique challenges that people with disabilities face when trying to obtain a home loan!
– Being employed and able to show a consistent income over the past six months
– Not being bankrupt or subject to any current debt agreements
If you can meet these requirements, you’ll be well on your way to being approved.
Types Of Bad Credit Home Loans
Paid and Unpaid
This type of bad credit home loan can be a good option if you’re struggling to manage multiple debts. It’s important to note you’re still responsible for repaying your home loan, even if your tax debt is paid off.
Part 9 Debt Agreement
Entering into a Part 9 Debt Agreement can help with a bad credit home loan application. It demonstrates that you’re taking steps to improve your financial situation. Part 9 Debt Agreements continue to appear on your credit file for five years, even after being paid off.
This is because you’re no longer seen as a high-risk borrower. So, a discharged bankrupt home loan is a great way to get back on your feet.
How To Choose A Lender Who Can Help Me?
If you’re looking for a bad credit home loan in Melbourne, then we’re here to help. Our expert mortgage brokers have years of industry experience helping people with bad credit get the home loans they need. We know which lenders are more likely to approve your loan, and we’ll work hard to make it happen. To clearly achieve this, we work with both standard and non-conforming lenders.
What Are Non-conforming lenders
When To Get Bad Credit Mortgages
-You have a down payment saved up
-You have steady employment
-You have equity in your home.
If you can wait until these conditions are met before applying for a mortgage, you’ll increase your chances of approval.
Have Any Questions? Ask Us!
Frequently Asked Questions
Can You Get A Home Loan With A Bad Credit Rating?
Absolutely, in fact there are special-purpose bad credit home loans designed to assist people with a history of bad credit. To qualify for one of these loans, you’ll need to demonstrate an ability to repay the loan. You can do so by providing some form of equity, such as a family home or investment property. You may also be asked to provide supporting documentation, such as bank statements and payslips.
How To Get A Home Loan With Bad Credit?
How Much Do I Have To Pay For A Bad Credit Home Loan Deposit?
In general, bad credit home loan applicants will need to provide a larger deposit than standard home loan applicants do. This is to reassure lenders that the applicant is committed to repaying the loan and to offset the increased risk. The required deposit will vary depending on the lender, but it is typically between 20 – 30% of the property value. This is in contrast to the standard Home Loan deposit amount of between 10 – 20%.
Do I Need A Guarantor For A Bad Credit Home Loan?
Another common requirement of bad credit home loans is the need for a guarantor. A guarantor is someone who agrees to repay the loan if you are unable to do so. The guarantor can be a family member or friend. They will need to have a good credit history for their offer to be accepted.We hope that you have found this article on bad credit home loans in Melbourne both interesting and informative. Our team is always happy to assist if you need any help with your bad credit home loan application. Contact us today for more information or to arrange an appointment.