The downturn of various economies across the world in 2008 caused a collapse in terms of home loan lenders. The collapse was found to be as a result of the granting of mortgages that were higher than the actual value of the properties.

So when borrowers defaulted and their properties were repossessed, lenders could not recoup the value of outstanding mortgages.

Due to this, home loan lenders became more stringent in terms of their requirements for home loans. Even individuals with near-perfect credit scores had to go through rigorous assessments before qualifying for home loans.

It has always been difficult for blacklisted individuals to qualify for home loans. The good news is that there is a form of reprieve in the form of home loans for blacklisted people.

Blacklisted home loans offer individuals with bad credit the opportunity to finance and buy their dream homes.

How home loans for blacklisted people work:

Lending institutions specialising in this type of finance will generally not look into your credit history as long as you meet the disposable income criteria. Non-bank home loans are granted based on affordability, rather than on credit history. You need to be able to prove to lenders that your income will be sufficient to cover costs of the home loan, despite your poor credit history.

Monthly instalments on the home loan include both principal debt and interest payments. Interest rates charged tend to be higher for blacklisted individuals.

You can make a deposit of any size in order to reduce the principal loan amount. Keep in mind that the larger your deposit, the lower your overall debt amount will be. Lending institutions generally require at least 10% as a deposit, but blacklisted individuals may be required to put up even 20% as a deposit.

It’s important to make sure that the loan you take out will be affordable to you. You need to have a clear understanding of the Terms and Conditions of the loan and all the costs involved. There may be hidden costs involved, so you need to be aware of these. For instance, you may be required to take out extra insurance to cover your bond amount.

You could also ask for assistance in managing your loan if necessary. You can improve your chances by taking steps to clear your credit record first. Debt counselling or debt consolidation may also be useful ways of getting your financial situation in order. These debt management tools can help you clear your credit record and improve your chances of qualifying for loans. It helps to do what you can to improve your credit record.

To find out more about home loans for blacklisted people, visit www.quickloansblacklisted.co.za

Use our finance calculator or apply for a loan.