Purchasing a home is likely the biggest purchase you will ever make. So, it’s important to do your research and know what you’re getting into. Unfortunately, there are a lot of myths and misconceptions floating around about Bad Credit Home Loans. In this post, we’ll dispel three of the most common myths. By knowing the truth, you can make an informed decision about whether this type of loan is right for you.
You need 20% for a deposit
Myth #1: I need a 20% deposit to buy a home. False. You may be able to purchase a home with as little as 3.5% down through a low deposit home loan. These loans allow you to purchase a home with a smaller down payment, making it possible for more people to buy their own home.
Myth #2: I have to pay mortgage insurance if I don’t have a 20% deposit. False. Mortgage insurance is only required when the loan-to-value ratio is over 80%. A low deposit home loan can help you purchase a home with a loan-to-value ratio of up to 95%.
Myth #3: I can’t get a low deposit home loan if I have bad credit. False. Even if you have bad credit, you may still be able to get approved for a low deposit home loan. Talk to your lender about your options and see what’s available to you.
You can’t get a low deposit home loan if you have bad credit
A low deposit home loan is just that: a loan for which you need to deposit a lower amount of money than you would for a traditional mortgage. It’s possible to get a low deposit home loan even if you have bad credit. Lenders want to make money, and they know that there are risks associated with lending to people with low credit scores. But that doesn’t mean that they won’t lend to you at all. In fact, many lenders now offer mortgages and home loans with low or no deposit, especially if you have a good job and can prove that you’re capable of making your monthly payments on time. So don’t believe the myth that you can’t get a low deposit home loan if you have bad credit–you absolutely can.
Low deposit home loans are more expensive
It’s a common misconception that you need to save up a bigger down payment in order to secure a home loan with a lower interest rate. This isn’t always the case. In fact, there are a number of low deposit home loans available that can help you get into your dream home without breaking the bank. What’s more, these loans often come with more affordable interest rates, so you can save money in the long run. Just be sure to compare your options and find the best deal for your needs.
You can only get a low deposit home loan if you’re a first home buyer
Many people think that you can only get a low deposit home loan if you’re a first-time buyer. This isn’t true! Anyone can get a low deposit home loan as long as they meet the eligibility requirements. So don’t rule out a low deposit home loan just because you’re not a first-timer—there are plenty of great options available.
You need to be employed to get a low deposit home loan
Even if you’re self-employed, you may still be eligible for a low deposit home loan. Many lenders are happy to work with borrowers who are self-employed, as long as they can provide proof of their income. So don’t let the myth that you need to be employed stop you from applying for a low deposit home loan. There are plenty of lenders who are happy to work with borrowers in a variety of situations.
There are a lot of myths out there about low deposit home loans, and it can be tough to know what’s true and what’s not. That’s why we’re breaking down the three biggest myths about Low Deposit Home Loans – so you can make the best decision for your unique situation.
