700K home loan with small default

You are about $13K - $15K short of deposit for a 90% + LMI lend overall (I have included FHOG of $10K).

So unless you can do this after the default is removed I wouldn't take the risk of entering into a contract at above that LVR level as credit scoring will cruel you.

I don't know of any lenders who have an LMI DUA who don't credit score to some level for high LVR deals. Happy to be corrected.
 
So the LMI value need to be included in the deposit?

You are about $13K - $15K short of deposit for a 90% + LMI lend overall (I have included FHOG of $10K).

So unless you can do this after the default is removed I wouldn't take the risk of entering into a contract at above that LVR level as credit scoring will cruel you.

I don't know of any lenders who have an LMI DUA who don't credit score to some level for high LVR deals. Happy to be corrected.
 
Homeloans Ltd are pretty good in this space. The can count the FHOG towards savings as long as you can demonstrate 5% genuine savings. They will also allow the FHOG to be paid at land settlement and not slab when the construction occurs immediately after land settlement.

They can do over 90% lends but credit scoring will be harsh and LMI won't be cheap, so ideal to keep it under 90% (ie 89.9%) and capitalise the LMI.
 
Land Purchase Price $400,000

+ plus Land Purchase Cost $15,000 (approx. )
Total Funds Required $415,000
- less Land Deposit $5,000
- less Bank Loan $360,000 (90%)
= $50,000 funds required for land @ 90%
LMI would be approx $6,800
So total land loan $366,800 should get discount of approx 1.1% so 4.8% or 4.55% come 20th Feb.


Construction $300,000 (if valuation comes back on the money*)

90% Loan $630,000 ($700k x 90%)
- less Loan Loan $366,800
+ $10,000 FHOG
= $273,200 available funds for construction
- $300,000 required for construction
= $26,800 needed to complete build
Extra LMI for build will be approx $8,500 (this includes credit already paid on land amount)

So summary

- Funds Required $50k land & $26.8k build
- LMI $6.8k land & $8.5k build
- Total loan approx $640k @ 4.55%

*note little bit extra in funds can save $$$$ in LMI
 
Would that be something my wife could apply herself (land only) with her current salary considering that i am the one with the default and wouldn't want our application to be rejected

Land Purchase Price $400,000

+ plus Land Purchase Cost $15,000 (approx. )
Total Funds Required $415,000
- less Land Deposit $5,000
- less Bank Loan $360,000 (90%)
= $50,000 funds required for land @ 90%
LMI would be approx $6,800
So total land loan $366,800 should get discount of approx 1.1% so 4.8% or 4.55% come 20th Feb.


Construction $300,000 (if valuation comes back on the money*)

90% Loan $630,000 ($700k x 90%)
- less Loan Loan $366,800
+ $10,000 FHOG
= $273,200 available funds for construction
- $300,000 required for construction
= $26,800 needed to complete build
Extra LMI for build will be approx $8,500 (this includes credit already paid on land amount)

So summary

- Funds Required $50k land & $26.8k build
- LMI $6.8k land & $8.5k build
- Total loan approx $640k @ 4.55%

*note little bit extra in funds can save $$$$ in LMI
 
Would that be something my wife could apply herself (land only) with her current salary considering that i am the one with the default and wouldn't want our application to be rejected

Are you an existing CBA customer? If you're I don't think you will have problems. If you're not I still don't think a default for utilities of that amount would be an issue <90% based on the info you provided.
 
Right now i am looking at 8.5% is that still feasible? I am with cba but not the wife

Are you an existing CBA customer? If you're I don't think you will have problems. If you're not I still don't think a default for utilities of that amount would be an issue <90% based on the info you provided.
 
92% might be ok with credit score if your significant savings are with CBA . I'd still recommend 10% + stamp duty, $2000 for other costs, less 10k fhog if at all possible.
 
Right now i am looking at 8.5% is that still feasible? I am with cba but not the wife

Should be fine, remembering that you're likely I settle on the land first and not for a while. I would be looking to save the extra funds by time you start build. The savings in rate and LMI is worth it along with the ease of approval.
 
Unfortunately savings are with another bank but they are genuine savings and we can prove that we have been savings for quite some time

92% might be ok with credit score if your significant savings are with CBA . I'd still recommend 10% + stamp duty, $2000 for other costs, less 10k fhog if at all possible.
 
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