I can already picture some of the responses I'm going to get for this post, but figure if I don't ask, I will never find out. So here goes...
I recently found a great little property that I would love to be able to buy - a first home - but my circumstances mean that, on paper, I look like a risky proposition for lenders. The property is in a small town, a bit out of Melbourne, so going for a lot less than something similar nearby would fetch, but also with a heap of potential to add value with some smart renovations (I'm trained in architecture and construction - the ideas are buzzing for what could be done, and how to pull it off)
The catch, though, is that I'm a full time university student, and while I get Austudy and have other income, my finances are up and down. Part of my income is from an extremely small business I run, and some from irregular casual jobs. I have a year to go on my studies. I also have a car loan, which is about 80 per cent paid off and will be cleared in the next 12 months (I have a good amount of equity in the car now, as well), and, thanks to some terrible times about 12 months ago, a bit of credit card debt that I am slowly eroding, without using the cards at all.
I know - I look like the last person who should be taking on a mortgage. That said, I have never yet failed to come up with the cash when a payment falls due, I have a supportive family and no dependents, and in the past three years have managed to pay rent that is substantially higher than the combination of mortgage payments, insurance, and rates. I already pay the same bills, so know I can cover them. The way I see it, I would actually be much better off buying somewhere like this in the longer term, as well as having a little extra cash available in the short term to carry out those basic improvements.
So, my question is, assuming I could scrape together the cash for a reasonable deposit, although likely still a bit less than 20%, are there any lenders that would consider me? Or would I just be too much of a risk?
I recently found a great little property that I would love to be able to buy - a first home - but my circumstances mean that, on paper, I look like a risky proposition for lenders. The property is in a small town, a bit out of Melbourne, so going for a lot less than something similar nearby would fetch, but also with a heap of potential to add value with some smart renovations (I'm trained in architecture and construction - the ideas are buzzing for what could be done, and how to pull it off)
The catch, though, is that I'm a full time university student, and while I get Austudy and have other income, my finances are up and down. Part of my income is from an extremely small business I run, and some from irregular casual jobs. I have a year to go on my studies. I also have a car loan, which is about 80 per cent paid off and will be cleared in the next 12 months (I have a good amount of equity in the car now, as well), and, thanks to some terrible times about 12 months ago, a bit of credit card debt that I am slowly eroding, without using the cards at all.
I know - I look like the last person who should be taking on a mortgage. That said, I have never yet failed to come up with the cash when a payment falls due, I have a supportive family and no dependents, and in the past three years have managed to pay rent that is substantially higher than the combination of mortgage payments, insurance, and rates. I already pay the same bills, so know I can cover them. The way I see it, I would actually be much better off buying somewhere like this in the longer term, as well as having a little extra cash available in the short term to carry out those basic improvements.
So, my question is, assuming I could scrape together the cash for a reasonable deposit, although likely still a bit less than 20%, are there any lenders that would consider me? Or would I just be too much of a risk?