Is it possible to get a home loan with a bad credit rating?
So alittle history. I was a single mum from the age of 15, money was super tight and i got loans, phone's and rented furniture but couldn't afford to pay it all back once i lost my job. Fast forward 13 years. I'm newly married but debts STILL follow me ( I'm trying to fix them one by one) My husband work's fulltime and i work casual. His credit rating is really good but mine is horrible. I guess I'm just wonder if any mumma's out there have gotten a home loan and brought a house in similar circumstances.
I really don't want to be renting for the rest of our lives but really don't know where to go for help with this or even where to start to try recover my credit score.
5 Replies
if you are casual with bad credit if you purchase a house purchase it only in his name there is no real benefit to including you in the mortgage assessment at all on a casual income.
then you will still be eligible for the first home buyers grant when you purchase your second home and put it in your name.
The last para about you being eligible to claim the first home buyers grant if you later bought another home in your name is not correct.
For most states they will have the following condition "All applicants and/or their spouse/defacto have not owned residential property, jointly, separately or with some other person....".
Thats right it means the house is solely in his name.
Being married to someone who has owned a home prior or during doesnt disqualify you from claiming first home buyers unless their name is also on the property. Its a loop hole regularly exploited.
Couples if done right can claim first home buyers twice. And not even need to sell up to split assets in the case of a divorce depending on value of properties.
Keep paying your old debts, eventually they will be finished and you can work on your credit rating from there.
You can still buy a home with a bad credit rating - it may just mean that you need to save a larger deposit. Talk to a mortgage broker that can assess an application for you and point you in the right direction. They have access to a panel of lenders that all have different criteria.
Keep on working on those debts.. It will be a huge relief once they are all gone