Message Boards

Guidelines

  • Please be sure posts are category appropriate.
  • No off-topic or off-color postings.
  • Postings may be deleted at the discretion of HGTV Moderators.
  • No advertising is allowed.
  • Be Nice. No name calling, personal attacks or flaming.
  • Certain words will trigger moderation of the post. These words mostly cover political and religious topics, which are OFF the topics covered by HGTV.
  • For general message board help, click the tab labeled "Tools," and choose "Help" from the dropdown menu.
Full Guidelines

  HGTV.com
  HGTV Message Boards
Hop To Forum Categories   Real Estate
Hop To Forums   Buying & Selling Homes
  Will we be able to buy a new home (sell the other) with a high debt to credit ratio?
Go
New
Find
Notify
Tools
Reply
  
Will we be able to buy a new home (sell the other) with a high debt to credit ratio? Sign In/Join 
posted
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!
 
Posts: 1 | Registered: Jan 22, 2014Reply With QuoteReport This Post
posted Hide Post
More than likely you will not be able to purchase until you are able to reduce your debt to income ratio especially with the tighter regulations.
 
Posts: 519 | Location: mi, usa | Registered: Apr 10, 2003Reply With QuoteReport This Post
posted Hide Post
Yes, you can RENT your current home, Mortgage company just need a copy of the LEASE agreement and your DTI will be lower. Therefore, you will be able to qualify for a new mortgage loan.


Bill Oliver
 
Posts: 3 | Location: Columbia, SC  | Registered: Feb 15, 2014Reply With QuoteReport This Post
Picture of rker321
posted Hide Post
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,
 
Posts: 5009 | Location: 0 | Registered: May 31, 2007Reply With QuoteReport This Post
posted Hide Post
I know that is what they meant. We need to look at total savings, time to sell current home and what gains and losses they may have, etc.


Bill Oliver
 
Posts: 3 | Location: Columbia, SC  | Registered: Feb 15, 2014Reply With QuoteReport This Post
  Powered by Social Strata  
 

HGTV.com    HGTV Message Boards  Hop To Forum Categories  Real Estate  Hop To Forums  Buying & Selling Homes    Will we be able to buy a new home (sell the other) with a high debt to credit ratio?