When is the best time to buy a house, if one of the people have a large debt?

Question

I have a large credit card debt, but we've been renting for 6 years. We don't want to keep throwing away money, but is it really a good time to buy a house/condo when we will be struggling so hard to pay the mortgage? We also have a 2 year old.

Answer 1

It all depends on your debt-to-income ratio. Many non-prime lenders and niche product loans allow up to 45% - 50% total debt to income (this includes the mortgage payment plus all your other debts that would show on a credit report).

Keep in mind too, that although getting into a home might cost a bit more per month, mortgage interest is tax deductible and can be worth an extra couple of hundred dollars a month X 12 come tax return time. So although it's more money out of your pocket today, it can balance out at the end of the year, or you can modify your withholding to a smaller amount to take advantage of this tax credit now and thus increasing your net income to help cover the extra cost of the mortgage payment over your current rent. You'll want to check with an accountant on how to figure this amount before you do.

Good luck! Hope you find your dream home.

Answer 2

I am a loan Consultant for last 4 years.This time is a good time to go and buy.Because it's a buyer's market.Prices are low.There are great deals out there.The rent you pay now, you may have the same payment for your mortgage.You are paying your rent anyway.If the mortgage payment can be the same then why to pay rent and throw the money away.Does it make sense?I have helped many people like you to get their house with a similar situation like yours.
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