Do I have a chance? My situation and goal...

**Berg** · 01-18-2010, 01:42 PM

Hi all,

I'll try to keep this brief, and give only the facts.

My goal:

Buy a vacation home in the next 6 months out of town for $240k to $350k, and roll our credit card debt into the loan.

My situation:

1st time buyer - currently rent house at 2k a month and will continue that
Combined income: $160k (50k/110k)
The bad: $65k in credit card debt.
Credit: $110k earner has very good credit of 739 - $50k not so much (don't know if in order to combine the incomes we have to use both credit scores?)

My questions:

Do we have a chance to get a loan?
How much would we have to put down?
Can I wrap up my credit card debt into the loan (I know this was done all the time in the good old day )

Summary
We basically pay $1400 a month in credit card debt. Prices have dropped A LOT where we want to buy the vacation home, and I'm thinking if we wrapped up the credit card debt into a 30 year mortgage of $350k then we'd only be paying $3-500 more a month. We live in CA and would be buying there.

Your help would really be appreciated. Don't want to entertain this if it's not realistic.

Thanks a bunch.

Berg

**Sabir** · 01-18-2010, 10:30 PM

Well stick to your plane and work hard you will definitely get benefit from your idea.. Or you may also tack some ideas from your locally property & real estate portal..

**Greg** · 01-19-2010, 05:28 AM

Talk to a couple of local lenders in the area you want to buy and see if your plan is feasable. They will run a credit report and take it from there.

**BoiseRealEstateSoup** · 01-19-2010, 09:54 AM

I can't think of a way that you can roll credit card debt into the loan, here's why.

When a bank lends you money, its a percentage of market value of that home. Say,,,,100% (Not gonna happen), 96.5% (FHA), 80% (Conventional) etc.

So if the subject house is worth 100k and you'd need to pick it up for less than 50k in order to roll the debt into the house. Here's the tricky part: No bank in my area will do that, and more than likely, none in your market either. Another option is a Home Equity Line of Credit which may or may not be available to you AFTER the purchase. Those are more akin to what was going on a couple of years ago, but they worked on the basis that the value would go up indefinitely or that there was ample equity to draw from.

In order to make it work, you would have to pick up a place with a TON of equity, which is unlikely since most of the Galaxy is upside down already.

Work hard, pay off debt avoid interest and taxes (not necessarily in that order) and then buy a vacation home.

California isn't finish crumbling yet...wait till a barrel of oil hits $150 and then see what happens

**Berg** · 01-19-2010, 04:48 PM

Originally Posted by BoiseRealEstateSoup

I can't think of a way that you can roll credit card debt into the loan, here's why.

When a bank lends you money, its a percentage of market value of that home. Say,,,,100% (Not gonna happen), 96.5% (FHA), 80% (Conventional) etc.

So if the subject house is worth 100k and you'd need to pick it up for less than 50k in order to roll the debt into the house. Here's the tricky part: No bank in my area will do that, and more than likely, none in your market either. Another option is a Home Equity Line of Credit which may or may not be available to you AFTER the purchase. Those are more akin to what was going on a couple of years ago, but they worked on the basis that the value would go up indefinitely or that there was ample equity to draw from.

In order to make it work, you would have to pick up a place with a TON of equity, which is unlikely since most of the Galaxy is upside down already.

Work hard, pay off debt avoid interest and taxes (not necessarily in that order) and then buy a vacation home.

California isn't finish crumbling yet...wait till a barrel of oil hits $150 and then see what happens

Can't thank you enough for the information, and for putting it in a kind and helpful manner. Not only said "no" but explained why which is extremely helpful in the learning process. Not easy to find on the "internets".

Take care.