SHOULD you bother applying for a home loan if you don't earn a lot of money - and you have a negative credit record?
A Fin24 user writes:
I live in an informal settlement and want to buy my own house. I don't earn a lot of money, and I have a negative credit record.
Is there any chance that I will be able to qualify for a home loan?
Marius Marais, CEO of FNB Housing Finance, responds:
Many customers ask us if it is worth their while to apply for a bond if they are blacklisted, and our answer is simply that it depends on several things.
The first issue is the amount you were blacklisted for. If you were listed for R1 000 or less and it is paid up, then yes, you may apply for a Smart Bond. FNB Housing Finance provides home finance for people earning no more than R15 000 per month (total household income).
The second issue is when you were blacklisted. If it was more than 12 months ago and the amount has been paid in full, your bond application will be considered.
The last issue is if you have repaid the money you owed, or if you have been "rehabilitated" in a court. If you can provide proof of either of these, you are free to apply for a Smart Bond.