Trying to buy a house Suggestions?

Question

My wife and I are trying to buy a house in Louisiana. We have have some debt....9000 car loan....and about 10,000 in credit card debt..due to my wife starting her Mary Kay business. I really want to use school loan money to initially pay off this debt so that we will show that we have no debt (school loans are deferred) when we apply for a loan. We can easily pay of this debt before we finish school.(3 yrs).and after school we will have plenty enough money to pay off the school loans. We are thinking about getting a bond loan for first time homebuyers. Should we do this? What would our payments be for a 130,00 loan. Should we take out additional school loans for a downpayment?
thanks for your comments

MY CREDIT IS REALLY GOOD

Answer 1

Sounds like you are in way too much debt already. School loans are for school, not paying off business debts.

Do yourself a favor and take a personal finance class.

Answer 2

Banks always look at debt to income ratios so the less debt the better but a new loan to pay off debt will only result in more debt as far as the bank is concerned. Total up your bill payments per month with all credit and loan debt then figure out what's left over from your income to pay a mortgage payment. Your new home loan payment should not exceed 50% of your total income and you need to show that you can afford the payment and existing bills based on your income. So long as you have a decent credit history and pay your bills on time you should be approved. As for what your payment would be on a 130k loan that depends if you want a 30y, 20y or 15y loan. Of course a 30y loan will be cheapest but always remember to include your taxes and insurance with your payment. On a 30y loan including taxes and insurance I would expect to pay around $1250.00 with an APR(interest rate) of 6%. I know this can get complicated so simply put:

1) When applying for a home loan get the lowest APR( interest rate ) on a 30y loan.

2) Make sure to include taxes and insurance in your monthy payment.

3) Your payment can NOT exceed 50% of your total income.


Hope this helps...

Answer 3

You really need to minimize your debt, before taking more on.
Those school loans will become like a cancer in your budget and you will never get ahead.

Sorry to, like, be a downer, dude.

I have experience in this. I just got my student loans... graduated college 1985... paid off. My credit is ok, but would have been much better without the loans. I thought I would have the money later on to pay off the loans easy as well.

Life is tough. It throws a bunch of curve balls. Never take a loan to pay off another unless you are consolidating debt at a lower interest rate.

Student loans will kick your butt later.

Answer 4

For $130,000 home, at about 7% interest, your payment would be like around $1,100 per month. I'm not sure if rolling it all in is a good idea - if you can afford a substantial monthly payment than by all means thats a good plan. It would suck to not be able to afford a high monthly payment and lose everything cause it's all tied in together. Good luck in whatever choice you make!

Answer 5

I am not sure if it is ever a good idea to use school loans to pay off other debts. But assuming you're younger I'd say, why not? Go for it.

Answer 6

School loans as in Stafford loans are paid directly to the school, so no you cannot use them for other bills. It also would be considered fraud as they are given only for educational means thus the deferment.

Answer 7

Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

Answer 8

yh bee ethical moral and you wouldent need a ----- loan

Answer 9

a house of suggestions....lol