We currently owe 166,000 on our FHA mortgage (original amount 180,000). We are looking to relocate and are afraid that our high debt to credit ratio is going to keep us from buying a new house. We already have the current house on the market. I can't help but think the fact that we have paid our mortgage ontime every month since we got it, should help them see that we can handle the mortgage (even though our debt to credit is high - around 60%). Sorry if I sound ignorant, just not sure if the requirments are less strict if you are a proven home owner.
Considered renting and paying down debt, but renting in our area would cost the same (if not more) than having a mortgage. We are not looking for a more expensive home, something very similar to what we already have. Thanks for any input!
I believe that they meant, that they would rent themselves.in the new area that they wanted to move, Yes renting their home and then paying down their debt would be a more sensible way of not getting into a situation that they may have a mortgage and rent on whatever they have rented. Not a good option in my view. Sometimes you simply need to wait. I know is difficult, but time does pass, housing is better now that it was. and if they sell their home and have reduced their debt, they will be in a better position than having two homes.This message has been edited. Last edited by: rker321,