Living With Parents Loan
Living With Parents Loan – we are pleased to be able to offer personal loans to clients who are living with their parents, grandparents or other relatives.
Need A Living With Parents Loan?
If you live in rented accommodation or with parents and are not a home owner, it can sometimes be difficult to find a competitive loan.
The main loan option open to a tenant is an Unsecured/Personal Loan.
This is a loan which is not secured on property, unlike a Secured or Homeowner loan.
An Unsecured loan allows you to borrow money without offering security in return to the lender, but you are still liable to repay the loan.
Because of the risk to the lender, a Personal or Unsecured loan is generally more expensive than a Secured loan and it can also be more difficult to find if you’ve had problems with your credit record, or if you’ve just started work.
Your loan application will be judged on your ability to repay the loan – your earnings and bank and credit history will be important.
We Use Specialist Lenders
However, there are lenders who specialise in offering competitive rates to tenants and those with a bad credit history.
On the positive side, an Unsecured Loan can be arranged with the minimum of paperwork and can also be paid out much more quickly than a Secured Loan, as there is no need to wait for a survey or valuation of property.
In most cases, it’s possible to get the money paid out within a day or two and some Lenders actually pay out in minutes, once they have all your information and approve the application on line.
You might also be interested in finding out about Adverse Credit Loans, where we advertise Lenders that will accept new applications from people who have bad credit history or low credit scores.
Co-Signing a Loan While Living With Parents
Are you planning to co-sign for your child’s loan? If so, here are a few tips to make this process as simple as possible.
Co-signing
If you are a parent of a child in college, consider co-signing for the loan. While this may seem like a generous gesture, it has consequences that should be considered carefully.
If you have poor credit, it may be better to choose a co-signer with good credit, or if you are sure your child can pay back the loan. If the child does not have the resources to pay back the loan, co-signing will help them establish credit history.
Reverse Loans
Reverse loans are designed to provide seniors with cash in retirement while they remain in their home. In general, an applicant must be 62 years old or older.
These loans require you to have a substantial equity in your home, which is generally 50 percent or more. You must also have lived in the home for at least five years before applying for a reverse loan. The home must be built after June 15, 1976 and the loan will be secured on the property.
Rent-free letters
If you are a child who is living with your parents, you may be eligible to receive rent-free letters. A rent-free letter shows that you don’t pay rent, and it improves your borrowing power.
When you are living with your parents, you should never buy a property you don’t know. You should never buy property that might be dangerous. Make sure to check the landlord’s reference letter sample to see how you should format your letter to appeal for rent-free status.
Investing in real estate
While there are many reasons to invest in real estate while living with your parents, one of the most obvious is that you will have more income to invest in the property.
You may have more cash in your bank account than your kids do, but if you invest £12,000 per year for the next ten years, you’ll have over £120,000 by the time they graduate.
While your children may not understand why you are investing, they can benefit from your knowledge about real estate investing and learn a lot about the process.
Saving money for a down payment on a home
One of the best ways to free up money for a down payment on a new home is to pay off debt. The biggest expenses in saving for a down payment are debt related, including credit card debt, student loans, and car loans.
It is important to eliminate as much of this debt as possible to make more room in your budget for saving. Fortunately, there are several ways to save money for a down payment.
Reducing future debts
If you’re living with your parents, a key element in managing your debt is to reduce future debt.
Start by examining your spending records to identify any unneeded or unnecessary expenditures. Often, debt is created by automatic charges or subscriptions that result in late fees.
Cutting down on these expenses can help slow the accumulation of debt, freeing up money to pay off existing balances. If your parent’s income is limited, you might be able to live with less, but it may be a longer process.
Get your Living With Parents Loan here today by clicking the banner on this page.
