It is possible to get a Home Loan even if you don’t meet a Bank’s credit criteria.
With the memory of the recent financial crisis still fresh and the resulting credit tightening still in effect at most financial institutions many would-be homeowners are still standing on the sidelines assuming that credit is out of reach for them.
Industry experts recently revealed that one in five people in Australia still can’t get credit from a traditional lender. That’s where Specialist Lenders come into play as these Funders cater for applicants that do not meet mainstream lenders’ credit criteria. The type of loan is often seen as a stepping stone to help individuals get back on track and after a period of solid payments the loans can be refinanced to a lesser rate.
A new website lets home buyers know what options are available and provides the information needed to review any possible solutions. NonConformingLoans.com.au is known for “out of the box” loan options as they specialize in loans that meet the needs of individuals who have been declined by traditional lenders. According to Ray Ethell the website owner, “Our Company provides many loan options to those with less than stellar credit or who have had issues in the past. A complicated past does not have to mean a complicated future.”
There are many reasons why certain borrowers will not meet the lending requirements set out by traditional lenders:
· Bad credit history – these borrowers have generally experienced a “life event” such as a marriage breakdown, illness or a business failure and are considered high risk by most lenders even if they have overcome the event that caused the impairment.
· Non Standard Income – borrowers with irregular income, such as Contractors, applicants on Probation, Short Term Employed or Self Employed without lodged Tax Returns, may not fit the criteria of mainstream lenders.
· Loan Purpose – these borrowers may require cash out to pay tax debt or consolidate multiple unsecured loans such as credit cards, personal or car loans or business debts and can be rejected by prime lenders.
· Credit Scoring – Most Banks and Mortgage Insurers have adopted statistics-based credit assessment models that do not offer the flexibility specialist lenders can provide.
Those interested in any of these types of loans can begin the application process directly on the website. For those who are unsure about applying for a loan or who aren’t completely comfortable beginning the application process online the website offers full contact information so that potential borrowers can call to speak with a non-conforming loan specialist.