Can Car Payments Reduce My Home Buying Ability?
August 30th, 2008 By Peter G. Miller
Generally, yes. However, under some loan program guidelines (but not all), if you have 6 to 10 remaining car payments, and if you have generally good credit, your auto debt will not be counted against you for qualification purposes. The logic is that the loan will be paid off not long after you move into the house.
You MUST, of course, report auto debt and all debts when making a mortgage application. The decision regarding how to count such debt depends on the qualification standards for individual loan programs.
Speak with lenders for details.
© Copyright 