Browse Forums Home Finance 1 May 12, 2009 11:37 pm Hi all, i want to take advantage of the FHOG before it ends. Therefor i am wondering if i can use $21,000 (new home) grant as a deposit. My price range is around $350000. I dont have any money saved up, but i got a decent income, over $900 a week after tax. Any one can help me? better yet any brokers here? DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: FHOG for deposit. 2May 12, 2009 11:44 pm And also i just read somewhere that Victorians get $31000 bonus? is this true, what should i do? DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: FHOG for deposit. 3May 12, 2009 11:54 pm I dont think banks do 100% home loans anymore. So if you dont have any deposit, chances are you wont get a loan. If you want 90% loans, you have to show that you've been saving for at least 3 months Idiots are fun, that's why there is one in every village! - Dr. House - Re: FHOG for deposit. 4May 13, 2009 12:38 am ginz88 Hi all, i want to take advantage of the FHOG before it ends. Therefor i am wondering if i can use $21,000 (new home) grant as a deposit. My price range is around $350000. I dont have any money saved up, but i got a decent income, over $900 a week after tax. Any one can help me? better yet any brokers here? Hey Ginz, You sound like me 3 - 4 months ago, and I also just changed jobs to boot Truth is, Yes you have missed the boat for using your FHOG as a deposit on a house. There is no bank that will give you a 100% loan, although RAMS may be an exception but I'm not sure if they will give you a full 100% loan. Even if they do you're looking at an additional 9.1k for Lenders Mortgage Insurance. We tried to apply for banks for 95% loans and use the FHOG as a deposit but we missed out by 1 week. When we applied, they had just changed there policies and now required 3 months genuine savings. Our work around to get things started. We received a "gift" of 10k off a relative and also took out a personal loan of $15k. $300 a month for 7 years. This put us onto $25k in my bank + the FHOG = $51k which was enough to approach more banks for a 85% loan which requires only a stable job, lower LMI (2k) and 0 months genuine savings. My partner and I have now saved up enough to repay the personal loan but I was foolish in signing and didn't realize I was signing a loan that didn't allow repayments for two years So, yes it is possible if you're able to obtain 15% of the house and land value and then approach a bank for an 85% loan. Otherwise the alternative is to have a relative put there property up as guarantor on your loan. ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Re: FHOG for deposit. 5May 13, 2009 12:40 am ginz88 And also i just read somewhere that Victorians get $31000 bonus? is this true, what should i do? And yes, Victorians get $32,000 if they sign between July 1st and End of Sept. ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Using FHOG as deposit for first home 6May 13, 2009 3:52 am ginz88 Hi all, i want to take advantage of the FHOG before it ends. Therefor i am wondering if i can use $21,000 (new home) grant as a deposit. My price range is around $350000. I dont have any money saved up, but i got a decent income, over $900 a week after tax. Any one can help me? better yet any brokers here? Technically it can be done. We still have lenders that have 95% home loans although you need to pay mortgage insurance out of pocket. You need to pass the credit scoring though and if you have been making credit applications often, approval is less likely. Re: FHOG for deposit. 7May 13, 2009 5:45 am Can I hijack your thread for a post or two please? Wrt this 3 month savings rule, does the total savings have to be any particular amount? I'm on target to show these savings by the end of july, and being a first home buyer, believe I qualify for the max grant (21k new build+ 4k SA state grant) Having been lurking for only a week or so, I haven't come across much mention of HomeStart Loans? This is the only lender I will approach given my circumstance (sole parent, 2 dependants, may have to fall back on centrelink payments at some point during the life of my loan) Anyone know how strict their criteria are lately? I'm gathering every relevant piece of paper I can source and plan to be over-prepared (if there is such a thing!) before presenting them with an application. Don't want a trail of failed applications all over town All advice gratefully received Re: FHOG for deposit. 8May 13, 2009 7:28 am GreenNooby Can I hijack your thread for a post or two please? Wrt this 3 month savings rule, does the total savings have to be any particular amount? I'm on target to show these savings by the end of july, and being a first home buyer, believe I qualify for the max grant (21k new build+ 4k SA state grant) Having been lurking for only a week or so, I haven't come across much mention of HomeStart Loans? This is the only lender I will approach given my circumstance (sole parent, 2 dependants, may have to fall back on centrelink payments at some point during the life of my loan) Anyone know how strict their criteria are lately? I'm gathering every relevant piece of paper I can source and plan to be over-prepared (if there is such a thing!) before presenting them with an application. Don't want a trail of failed applications all over town All advice gratefully received Hi, The amount of gen savings required varies. With some banks it is 3% and others require 5%. Some lenders, need to see evidence of 3 months gen. savings even for 85% lends. I did a 22% lend the other day... and Westpac still wanted to see evidence of gen savings. It's getting tight. Re: FHOG for deposit. 9May 13, 2009 12:18 pm Sounds about what I figured My morgage broker is telling me homestart want to see minimum $1000 gen saving over 3 months. Got that covered. Total purchase price I'm aiming for is 180k (110-115 for the land and 65-70 for a reeeaaallly basic pre-built) I have a counter-offer on the table, languishing, while I try to get on the morgage merry-go-round Was hoping to have it all lined up, building contract signed etc. before going through with the full application. However, with maintenance income not able to be used (yet) I can't borrow enough to do both land and build loan at the same time. So, my question is: Is it possible to secure the land only with a lower loan amount then in a few months time, go back (with my 20k deposit, which I don't have yet obviously) and borrow the balance of what I need to do the build? Home start don't 'do' LMI it's all structured differently, but they do allow use of the fhog as deposit. Can I use that towards the land only loan? I wanna get this land I've made an offer on, there's still negotiating room on the price too I think. Done my homework and know what it'll cost to have the block ready for the building delivery. Also planning to pay for a valuation of sorts to take to Homestart to back up my proposal. Using Grant as deposit on home loan 10May 13, 2009 12:28 pm GreenNooby Having been lurking for only a week or so, I haven't come across much mention of HomeStart Loans? This is the only lender I will approach given my circumstance (sole parent, 2 dependants, may have to fall back on centrelink payments at some point during the life of my loan) Anyone know how strict their criteria are lately? I'm gathering every relevant piece of paper I can source and plan to be over-prepared (if there is such a thing!) before presenting them with an application. Don't want a trail of failed applications all over town All advice gratefully received HomeStart is covered here at Shared equity or bank Loan thread http://forum.homeone.com.au/viewtopic.php?f=9&t=15821&start=0&hilit=homestart and here at the Bloody Bank thread http://forum.homeone.com.au/viewtopic.php?f=9&t=14072&start=0&hilit=homestart With regards to the definition of genuine savings rule, there is no standard. It depends on the lender and which mortgage insurer they use. Now that banks are allowed to insure their own loans, there is a great variation on this. In addition to my earlier post here, we still have lenders that DO NOT require genuine savings for home loans introduced by qualified mortgage brokers. A qualified broker can show you a wide range of options available. Using Grant as deposit on home loan 11May 13, 2009 12:36 pm GreenNooby So, my question is: Is it possible to secure the land only with a lower loan amount then in a few months time, go back (with my 20k deposit, which I don't have yet obviously) and borrow the balance of what I need to do the build? Home start don't 'do' LMI it's all structured differently, but they do allow use of the fhog as deposit. Can I use that towards the land only loan? I wanna get this land I've made an offer on, there's still negotiating room on the price too I think. Done my homework and know what it'll cost to have the block ready for the building delivery. Also planning to pay for a valuation of sorts to take to Homestart to back up my proposal. I can't help you with how Homestart will assess your proposal as this is not available in NSW but I can answer the fhog question. As FHOG is not paid for land (paid at first stage of construction if you apply through your lender), you won't be able to use it as a deposit for land only loan. We have covered this in many threads. Just use the search function for stevep79 or thlo as author and grant as the keyword. Re: FHOG for deposit. 12May 13, 2009 12:43 pm HomeStart organise their own valuations - at least they did when we sold our old house and buyer bought thru HomeStart I am not sure how you can get a house built for 65 - 70k, even a really small basic one? What do you mean by a 'pre-built' house, do you mean you are buying a pre-fab transportable type of house? However 180k could get you an entry level house in some small country towns (see, I read your introduction ), would that be an option for you? Using Grant as deposit on home loan 13May 13, 2009 12:48 pm thlo HomeStart is covered here at Shared equity or bank Loan thread http://forum.homeone.com.au/viewtopic.php?f=9&t=15821&start=0&hilit=homestart and here at the Bloody Bank thread http://forum.homeone.com.au/viewtopic.php?f=9&t=14072&start=0&hilit=homestart In addition to my earlier post here, we still have lenders that DO NOT require genuine savings for home loans introduced by qualified mortgage brokers. A qualified broker can show you a wide range of options available. Did I mention Helyn is a great contributor to both those threads I named? Re: FHOG for deposit. 14May 13, 2009 12:56 pm Helyn I am not sure how you can get a house built for 65 - 70k, even a really small basic one? What do you mean by a 'pre-built' house, do you mean you are buying a pre-fab transportable type of house? Ha ha! Yes it's basically a transportable. The area I want to buy land in has quite a few of them. Seaside township, lots of holiday homes and shack type dwellings. Google 'oasis homes SA'. They are an adelaide company who only build/deliver within SA. thlo, sorry about the naive question re: land only loan. I warned ya'll with my username! Total novice at this, but I'm learning at lot really fast thanks to this forum full of near-on experts! Ah Helen, you can call me Lee Now I feel a little more comfortable here I can share my name Using Grant for home loan deposit 15May 13, 2009 1:03 pm GreenNooby thlo, sorry about the naive question re: land only loan. I warned ya'll with my username! Total novice at this, but I'm learning at lot really fast thanks to this forum full of near-on experts! Helyn and I are full on experts, I don't know about the rest No actually I am just a mortgage broker. Re: FHOG for deposit. 17May 14, 2009 2:21 am Helyn me too! I'm in the aged care field as a carer. See this was my basic plan - get into a home loan on the lowest income I'm likely to have, then move to the area and start work (I could even walk to work from the block I've chosen) thereby easily affording all repayments aswel as having the ability to save and do improvements to the place. Got an appt with the HomeStart people on friday. Recent enquiries have put a spanner in the works wrt building at the factory and delivery to site. Looks like that option would hold up the timing of fhog being paid. Next option (to allow earlier release of fhog, thereby assisting with land purchase/settlement) is to build on site. OK! I'm more than willing to be flexible. Exploring Sarah Homes now to see if they will build what I've designed for my block, at a price that's do-able for me. Oh Look! A money Genie just dropped $20k in my lap That'll do nicely - Thanks Re: FHOG for deposit. 18May 14, 2009 9:30 am Good luck with your housebuild, Green Nooby Can you post a plan of the house you are intending to build? Yes, I have heard of Sarah Homes - we had a transportable detached rumpus room built into backyard (very large yard) of our old house - just one room really but had kitchenette and small bathroom as well - son ended up taking over it as his private quarters until he left home That was with RiverGum homes. In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4831 |