Non Conforming Home Loan Lending and Debt Negotiation Services
Sometimes refinancing your Home Loan can be a challenge. You may have been knocked back by the banks, have a blemish on your credit report, are self employed with not a lot of financial records or owe money to the Tax department.
At Fast Debt Help we have been working outside the constraints of traditional Bank Lenders and have developed relationships with Lenders that see things a little differently. They take a more out of the box approach to their Lending criteria. If you like a more common sense approach.
Most traditional Lenders will say NO to any refinance attempt if there are late payments, any sort of Credit Default ,Tax Debt, Mortgage Arrears or if your income criteria does not fit their box. Forget extenuating circumstances, it's simply a NO. Even though you may have plenty of Equity in your home and the new payment plan puts you in a much more financially secure position.
Most of the time the Major Banks hands are tied by Credit Policy which is inflexible and even though you may have been a customer for a long time, if your circumstances are not to their liking it just doesn't matter. They can't help you and in many instances don't try.
The banks will only offer loans that conform within the set of Guidelines they have been given. Therefore, if your position is anything out of the box and not considered by them to be absolutely safe, or offers any sort of risk to the Lender, they will automatically decline you.
A Non Conforming Loan could be the loan answer for you
There is however another alternative and it is called a Non Conforming Home Loan. There are a variety of Lenders who specialize in this Non Conforming area, but most Brokers will not get involved in this Lending, due to the amount of work and expertise involved in getting one of these loans approved.
Fast Debt Help specialise in this area and simply build a Fee for service into the home loan, to cover the additional costs of providing this service. This is paid by the bank when the home loan settles. This way the fee is only paid if Fast Debt Help can achieve a positive solution for you.
The application process
The process when applying for a Non Conforming Home Loan is a little different to that of a Traditional Lender. Fast Debt Help needs to submit an application signed by you, with all required documentation and loan papers first, before we can quote an interest rate or repayment amount. It is then up to you to accept or reject this. By law we must put you in a better position overall, before we can proceed with a loan, but no firm interest rate or repayment amount can be quoted, until after an application has been assessed. It is up to you then to accept or reject the offer.
In many instances Fast Debt Help customers who have found themselves needing a non conforming Home Loan, have built up a lot of Debt that is unsecured such as Credit Cards, Store Cards, Personal Loans, Tax Debts etc. In some cases to facilitate the approval of a new Home Loan it may be considered necessary to negotiate with your creditors to reduce the outstanding debt, to fit into what can be obtained or approved with the home loan. The same Debt Negotiation may be necessary if your budget means you can only afford to pay a certain amount as a repayment and the loan needs to be less.
Debt negotiation services
Fast Debt Help facilitates a Debt Negotiation Service, where we use a specialist Debt Negotiation Company to work for you, to negotiate lump sum settlements on your outstanding debts, paid with the proceeds of your new loan. In many Instances this can save you thousands of dollars. The charge is a fee of 20% of what they save you and this fee is built into the home loan and paid on settlement, along with all debts being consolidated. This alone can make a big difference to your prospects of consolidating your debts into a home loan.
Once Fast Debt Help takes on your case it is imperative that you do not negotiate with your creditors directly as this will prevent us from obtaining the best possible outcome for you.
Fast Debt Help takes a personal approach to Non Conforming Lending. We will work with you to obtain the very best outcome for your Financial Well Being. Taking the time to get this right, is the most important thing you can do to remedy a difficult financial position. Providing your consultant with all required documentation in a timely manner will help speed the process.
Let Fast Debt Help turn that No to a Yes!
NON CONFORMING HOME LOANS FAQ
Most banks will not lend against your home if you have defaults on your credit file, you owe money for Tax, you haven't paid your rates or other bills are running late.
Even though once you consolidate your loans everything is more affordable, they consider this too big a risk to refinance you.
A company that will refinance your debts and take that risk into consideration is said to be offering a Non Conforming Home Loan.
The Interest rate is determined by the risk the Lender has taken to approve your loan. The amount of loans that default when people have experienced financial troubles is considerably higher than normal, and the interest rate reflects the risk involved. Even if you have perfect credit a bank may still charge a higher interest rate for loans they deem to be riskier. Those advertised extra low interest rates are only available to a very select perfect situation on residential property. Quite often it is not that much higher than you may have been able to get anyway.
No! If you make the repayments promptly and on time for a couple of years, (sometimes earlier) we will look at refinancing you into the best rate available at the time. A Non Conforming Loan should just be a transition period for you to get into a better position. As circumstances improve so will your ability to get lower interest rates. This applies to clean credit finance as well.
While the Interest rate is a little bit higher than a normal Home Loan it can be considerably cheaper than a car loan, credit cards or other debts. The consolidation of debts over a longer period of time should drop your repayments substantially on what you are making now. This will put you into a much better financial position for your day to day living expenses.
Also if your debts are running late, you need to address the situation before it escalates into a mess. We are obliged to make sure the refinancing of your debts, puts you in a much better and more secure financial position than before. This can quite often mean the difference between keeping your home or losing everything.
You will need to have good equity in your home, (generally in excess of 20%) and the income to make the new repayments and meet your normal household expenses.
You will need to be able to show that you have been making payments to what you can afford.