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Refinance auto loans for higher mortgage approval amount?

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WVBrandonDC Joined: 26 Mar 2011 Posts: 1 1.43 Dollars($)	Posted: Sat Mar 26, 2011 1:14 pm    Post subject: Refinance auto loans for higher mortgage approval amount? Like 0 Dislike 0 My fiancé and I are planning to buy soon after our wedding in July. We are currently renting, and have 2 auto loans; my vehicle payment is $400 mo with about 16 months remaining, and hers is about $350 mo with about 30 months remaining. Last year before we signed a 1yr rental lease, we were looking to buy and were approved for around $300k. In the months since, our credit cards have been paid and we will be debt free aside from the auto loans. We are first time home buyers in the Washington DC area, and will probably go with a FHA loan. We are looking to increase our mortgage approval amount, and would like to know if refinancing our vehicles for a lower monthly payment amount would allow us to be approved for a higher mortgage amount?
jameshogg Joined: 20 Dec 2005 Posts: 10460 Location: Nevada 987.57 Dollars($)	Posted: Sun Mar 27, 2011 10:38 pm    Post subject: Like 0 Dislike 0 Hi WVBrandonDC, Refinancing your vehicles won't help you qualify for a higher mortgage amount. If you pay off the debts faster and lower your debt amount, then your debt to income ratio will improve and you will be able to qualify for a higher mortgage amount. Thanks
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Mar 28, 2011 7:22 am    Post subject: Auto Loans Like 0 Dislike 0 Of course you qualify for a larger mortgage if the auto loan payments are less. What is the amount of the down payment that you plan to make? The minimum FHA required amount of 3.50% or larger? What is the maximum FHA mortgage permitted in the place you plan to buy? When you say the Wash D.C. area, do you mean Wash D.C. itself or some surrounding county? Qualifying for a larger mortgage is ok as long as you do not exceed the maximum FHA mortgage amount, and that depends on the county in which you purchase. It does no good to qualify for a higher mortgage if you exceed the maximum FHA mortage amount. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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