Obtaining a mortgage for Foster Carers can be exceptionally difficult, especially when their sole income is the allowance they receive for Fostering.
Foster carers can be full documentation borrowers qualifying for Conventional loan programs and take advantage of interest rates at the lowest they have been in years
We understand the financial conditions & allowances around fostering and as keen supporters of foster parenting, we have financing programs for new or established fosters we will accept the total amount of allowance that foster carers receive as their main income and not just a proportion of it, even where foster carers do not have another part or full time job.
Can I get a mortgage based on my income as a foster carer?
Absolutely! Some lenders will allow you to use 100 per cent of your fostering income. For example, Real Consultants Mortgage and Real Estate Services Inc has a range of lenders that they currently work with who will definitely accept all your fostering income.
Be aware that high street lenders may ask for your net profit after deducting your foster care allowances, but this will result in an income figure substantially lower than what you are in receipt of.
What deposit will I need to buy a property?
As a foster carer, you will require a minimum five per cent deposit. This is the same minimum deposit you would require as an employed or self-employed applicant.
How long do I need to have been fostering for?
Most high street lenders will require you to have been fostering for a minimum of six consecutive months. However if you have been fostering for three months, some non-high street lenders will consider this also. Please be aware that this may result in less competitive interest rates though.
How do I evidence my income as a foster carer?
This will vary depending on the lender, however you will likely require remittance forms from your fostering service, rather than accounts.
As a first time buyer and a foster carer, can I use the Help to Buy scheme?
Yes. Fostering income can be considered in the same way as employed income with the right lender, meaning that 100 per cent of the income can be taken into consideration. This will allow you to purchase a new build property with as little as a 5 per cent deposit and further assistance from the Help to Buy scheme.
Can I refiannce my home?
Yes, you can refinance whether it is to obtain a more competitive rate or because you want to raise capital for debt consolidation or home improvements. You will need to do this with a lender who accepts 100 per cent of your fostering income though.
Can I purchase a Buy-to-Let property as a foster carer?
Yes. However you will likely require at least a 20 per cent down for a Buy-to-Let property.
We at Real Consultants Mortgage and Real Estate Services Inc understand the challenges you can face getting a mortgage as a foster carer and have years of experience helping foster carers to secure mortgages or to refinance.