Matt H asked:
I have a total of $7000 of credit card debt with a high interest rate. I would like to buy a house but cannot afford both the credit card payment plus a house payment. I have an excellent credit score with all three agencies.
I have a total of $7000 of credit card debt with a high interest rate. I would like to buy a house but cannot afford both the credit card payment plus a house payment. I have an excellent credit score with all three agencies.
Is it possible to obtain a home loan that I could use to pay off the credit card debt? If so, any advice?
http://1mortgagecalculator.info
No…to buy the home you will have to have at least a 3.5% down payment….you can never borrow more than the house is worth, so you will not have money coming back to you to pay off the cards.
Buy the home first, assuming you qualify for a home loan. If you ever have $7,000 in equity in the home you can get a home equity loan to pay off the credit card.
Call your credit card company and tell them you have an offer from company X to transfer your debt to them, interest free for two years, with no fees. Ask them to match it.
Or, open a line of credit at a credit union. Generally they offer lower interest fees.
Or, pay off your CC debt, THEN buy your house.
Good Luck!
Hey Matt,
If your a 1st time home buyer you would qualify for the $8,000 tax credit. You’ll have to buy the house by April 30, 2010 then you’ll receive $8,000 back on your tax return. Use that money to pay off the credit card debt. Here’s the link to the irs page that explains more.http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Good luck
Phil Warrick
No
You would have to buy a home first and then take a line of equity on it. You would have to of course have equity to borrow from to begin with.
I would never advise putting credit card debt (unsecured) against a mortgage which is secured. If for some reason you couldn’t pay your mortgage because you stuck this other debt on there, away goes your house. It is easier to go bankrupt and keep your house if things go that way.
Be thankful you probably will not be able to do this. Find another way to pay down your credit cards.
Not any more. You won’t find loans these days for one penny more than your home’s purchase price. Your only option is waiting until you develop equity in your home, and then applying for a home equity loan.