So you see it all over your Facebook news feeds (well I do anyway) house and land packages from X amount, $1500 deposit only needed.
Is that true? Can you build/buy a house with only a $1500 deposit?
What advice can anyone give me at all. A bit of my situation. I’m a single mum with 4 children, im currently staying with family so my outgoings are minimal. Approx 6-7k per month I bring in. However, my credit history worries me. My ex got a phone plan in my name and didn’t pay it, I have no paid it off but I know I can’t even apply for another because of the default. He also used several “buy now, pay later” things in my name, some have been paid off, some I am still paying off, however, I know at least one did go to debt collectors because I didn’t know about it until they found me as I have moved a lot. Other than that I’ve never had any loans, finance, or credit cards. What is my first step? How can I get help with getting my own home? Any advice is appreciated! Thankyou.
I want to buy a house with questionable credit history.
I want to buy a house with questionable credit history.
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6 Replies
Start off with getting your credit score, then you will know where you are at.
I'm not really sure how much those defaults will affect you.
As a single mum, the best offer I know of is the Government's Family Home Guarantee scheme, where you need a 2% deposit and you must earn less than 125k.
You also don't pay mortgage insurance, which can be quite a lot on top of your loan.
That's as good as it gets.
If you have enough income to service the loan and deposit is your only issue, then look at getting parents to put their home up as security (go guarantor).
If you parents aren't too old, have sufficient assets, even still working, this is a good option.
They have to consider the implications to your parents if you default on the loan, so if they are retired and only have the house, they probably won't accept them.
In terms of your expenses, it doesn't matter how minimal they are, because with 4 kids, there is a minimum they have to assume if you are below that. Unfortunately with 4 kids, that's pretty high.
Those 1500 ads I imagine are builders, who only require a 1500 deposit to hold your piece of land for the house and land package, nothing to do with the banks.
Talk to a mortgage broker, they know all the ins and outs of everything.
My husband and I just bought our first house/land package. The deposit is actually to hold the land until the loan is granted. In our case , it was $2000 .
We had old debt too, and lots of it ! We hired a lawyer to help us clear all our debt . You'll actually need a financial lawyer because if you don't, the debts continue to sit on your file even once they're paid in full. The Lawyer has them legally removed from your history once paid off . It 'can' be long process, depending on how much you owe, but it's worth it .
Don't apply for loans or credit cards during this process or any other time before your loan is granted or it too, will show up on your credit file.
You also need to show savings . We had $60k In savings , but they only needed to see $35000 as that's what the deposit actually is for the house itself once the loan is granted .
So $2000 to hold the block until settlement of loan .
$35000 for house once loan is settled.
These prices are approximates and a broker will help you thru those parts
I thought it was just about showing genuine savings over a time period, usually 6 months.
Not actually showing how you saved a particular amount for a deposit.
Yes, we saved that in six months on both incomes
I think the usual is actually 3 months but because they had issues with my employment history, I had to show 6 months. I'm pretty sure you need to just show your balance going up, not down, within whichever specified period they ask.
Becareful with the builders. One just went bust. So check all those details before you sign up.