Browse Forums Home Finance 1 Aug 30, 2015 8:19 am Hi all, Just wanting some advice on the situation we are in. My partner and I have bought a block of land but when we went for it together it got knocked back as my partner hadn't been self employed for more than 2 years (his tax returns were terrible) and also had a telco credit default from 3 years ago (which is now paid in full). So I had to get the block in just my name. Now we are up to the construction stage and went to go for the loan the other day. He is now more than 2 years self employed, this years tax return was $35,000 more then last year but he still has the credit default next to his name. I am on a full time wage and we both have genuine savings- over $22,000. Our bank manager isn't giving us much info but I'm extremely nervous we'll get knocked back AGAIN and my income won't be able to loan the construction part too. Has anyone been in this situation or know of someone who has and has there been a positive outcome?? Re: Self Employed and Credit Default going for construction 2Aug 30, 2015 8:35 am We had a very similar situation except add 3 kids to the mix and myself on a part time wage. We were knocked back many times for a loan. We fortunately had enough money to pay for most of our loan and borrowed the rest from my dad. But we were extremely nervous going for a construction loan. But one of the managers came up with the idea of using my hubbys weekly wage as proof of income. So you could do this assuming your partner has had a good few months of payslips. The bank can look up your history of pay over last 3 months and can use that as evidence. Not sure about the credit part though. Re: Self Employed and Credit Default going for construction 3Aug 30, 2015 9:48 am It comes back to how big the default is, if it was ignored or paid quickly, who it's to, any story behind it & the percentage you need to borrow. Lenders don't love defaults because they want to know you'll make your repayments. Ask a broker who might be able to direct you to the most friendly lender for your situation. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19665 Hi guys, I want to do some floor levelling before laying the planks and am considering doing it with self-levelling or yellow tongue PB board. I am wondering which one… 0 6722 I would never build with Fowler homes. I built with them in 2021 and till date maintenance issues are pending. All their existing trades and businesses don't work with… 14 107945 |