Mortgage Eligibility - Do I get one?

Guest 0.10 Dollars($)

1. I had great credit score six months ago (798)
2. I took 55k credit card loan six months ago. I spent it for wife's education, investment loss, paid car loan.
3. I am now left with 45K credit card debt.
4. Current credit rating 660.
5. My salary 90K + incentives

I have the following predicament
a. Buy a condo for 150k and add this 45k to house loan?
b. Wait one year and pay off debt and buy a house?

What are my options? I really appreciate your suggestions.

Thanks

Guest 0.10 Dollars($)

6. Current Rent $700. South East Michigan. No kids. No other expenses (thankfully, my wife's education is done). I want my wife to pursue higher studies but my debt is making us uncomfortable. She wants to work until we payoff our debt, but I like her to continue her studies.
7. I currently pay 7% interest on cards.

helping_user · Posted: Fri Mar 09, 2007 11:08 pm Post subject:

Hi Bill

I personally suggest if you can afford the extra loan amount for a condo of 150K then you can go for it. With a credit score of 660, you can easily qualify for a loan at low interest. And currently you don't have too much of expenses rather than credit card payment. So I think it's a right time to go for a condo.

Thanks

Guest 0.10 Dollars($)

Please tell me what $55k is in dollars. It's for a mortgage.

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Hello Lynn.

$55k is 55000 dollars. Are you trying to buy a property with $55k mortgage loan or are you just try to refinance? How good is your credit?

stephenie1 · Posted: Tue Jul 15, 2008 10:33 am Post subject:

Hi Bill! Welcome to the forum. Buying a house or a condo is a big decision. It sounds as if you have all of your ducks in a row. Some of the things you need to consider when purchasing are location, HOA dues, and type of loan. When purchasing a condo, FHA has special requirements. You may qualify for a conventional loan or an FHA loan. How much are you wanting to put down on your home? FHA has a minimum of 3% down. You can qualify for down payment assistance programs, also to help with down payment and closing costs. One of the nice things about owning a home is that it is yours. You may use the interest as a tax write off, you have to check with your CPA. Another question is how long do you plan to live in your home? You mentioned that you want your wife to continue her education. Will she need to relocate to do so? As for the student loans, you can combine all of them into a fixed rate loan and pay them off. The interest on student loans can be tax deductable. I have student loans and I am able to adjust my payment to fit my specific needs. I hope this information is helpful. Please let me know if you have any additional questions.

stephenie1 · Posted: Tue Jul 15, 2008 10:39 am Post subject:

Hi Lynn! Niicss is correct! Lenders start speaking and writing in mortgage lingo. I catch myself doing that. I hope you are having a great day!

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