Profile picture for xwpreadr

Buy with high credit card debt?

I owe $35,000 in credit cards.  My interests are low (2.99-8%).  I don't have money for a down payment.  My gross salary is $76,000.   My credit score is in the low 700s.   Can I buy and should I buy?   If I buy now and get that $8,000 credit I could put it toward repaying the credit cards.   What should I do?
  • April 10 2009 - Fort Lauderdale
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Answers (6)

Profile picture for BMFPitt
If you have 50% of your gross income in credit card debt, you should not even think about buying a house.
  • May 04 2009
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We have special home loan programs for someone in your situation, so it is possible to qualify.  Its a matter of credit score, income, current liabilities, and proposed liabilities. I can do an exact analysis for you within 24 hours, contact me at Folguin@americahomekey.com.
  • May 04 2009
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Profile picture for wetdawgs
What should you do?

Work on paying the credit cards down to zero (cut them up today).
Save up a downpayment of 20%
Save up a slush fund to cover house emergencies.

Then, and only then apply for a loan.

I suspect that will come after the $8000 credit is available, but it is better to be safe than sorry.
  • April 11 2009
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Profile picture for SlickPoetry
No down payment at all? How were you planning on buying?

And the idea of opening up a 30 year mortgage so you can pay your credit card bill down by 25% is ludicrous. get real.
  • April 11 2009
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Profile picture for MikeReynolds
Yes, you pretty much need to both pay off your cards and be able to put 20% down.  But perhaps you could get an FHA loan.
  • April 11 2009
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So basically you owe 6 months worth of salary to the credit card companies? Are you making the minimum payments or are you working to retire the debt? You say you don't have money for a down payment which tells me you don't have 3-5 months worth of money saved should something happen to your job. In the words of Suze Orman....denied!
  • April 10 2009
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