Well my broker has come back to me with some really innovative solutions.
The most surprising of which is his offer of the brokerage firm lending me the extra 5% I need to make 80% LVR and charging me a risk fee similar to what I'd be paying in LMI.
He's still structuring the details, but it will probably involve around $40k loan, at around 10% interest, about $8k risk fee, repayable in 9-12 months. It will probably involve them having a caveat over the property too.
Is this very common in the lending industry? He mentioned that they've done it once or twice before, but I'm really impressed that he's gone out of his way to offer such an amazing solution to my problem. He believes we're very strong applicants, despite the bad credit on my partner's record, and is putting his money where his mouth is.
This solution brings us up to 80% LVR, therefore taking LMI out of the equation and opening all the doors that were previously closed to us.
They're charging a risk fee, but it's still less than the LMI that I woud have otherwise had to pay even without the bad credit.
Another option he offerred was having me personally buy the property without my partner. I didn't think I would qualify on my own as I'm self-employed and my accounts only show about $35k income despite billing a gross amount of $120k. However, he pointed out that taking rent savings and depreciation into account, I can show about $110k, enough to service the loan on my own!
I'm really happy with my broker. I'm going to have to send him a really expensive bottle of Champagne once this is all over.
The most surprising of which is his offer of the brokerage firm lending me the extra 5% I need to make 80% LVR and charging me a risk fee similar to what I'd be paying in LMI.
He's still structuring the details, but it will probably involve around $40k loan, at around 10% interest, about $8k risk fee, repayable in 9-12 months. It will probably involve them having a caveat over the property too.
Is this very common in the lending industry? He mentioned that they've done it once or twice before, but I'm really impressed that he's gone out of his way to offer such an amazing solution to my problem. He believes we're very strong applicants, despite the bad credit on my partner's record, and is putting his money where his mouth is.
This solution brings us up to 80% LVR, therefore taking LMI out of the equation and opening all the doors that were previously closed to us.
They're charging a risk fee, but it's still less than the LMI that I woud have otherwise had to pay even without the bad credit.
Another option he offerred was having me personally buy the property without my partner. I didn't think I would qualify on my own as I'm self-employed and my accounts only show about $35k income despite billing a gross amount of $120k. However, he pointed out that taking rent savings and depreciation into account, I can show about $110k, enough to service the loan on my own!
I'm really happy with my broker. I'm going to have to send him a really expensive bottle of Champagne once this is all over.
