No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Since you have to retain your existing residence, your debt to income ratio is going to be pretty high on the new purchase. Probably would be too high for conventional financing... as even with 10% down + paying the PMI premium at closing (rather than monthly) I am calculating it to be a little over 50%, and generally 45% is the max that would qualify (up to 49.99% can qualify for exceptionally strong borrowers, i.e. excellent credit, usually 20% down, and a lot of reserves). Plus conventional would require you have 6 months PITI in reserves for both the new + departing residence since you aren't selling it prior to closing and you don't have 30% equity. May need to go with FHA financing, which would not require any reserves and can permit a debt ratio up to 56.99% to qualify. With FHA the debt ratio would be around 55.7%, so you are going to be real close to the max as well. So it's possible, it's just going to come down to how much the property taxes & insurance are. I am estimating $900/year for insurance & $4,500/year in property taxes. If it's a little over then you can put 5% or 10% down with FHA to reduce the payment and get the debt ratio within the limit.
HI Shane,
Thanks alot for your reply. We are toying with the idea of selling my husbands truck which would eliminate his truck payment and we could also pay off my car. Would eliminating both of our car loans help any?
Yes, that would drop your debt ratio considerably. Most likely enough to qualify for conventional financing with 5-10% down. With FHA that would drop the debt ratio by 7%, much more breathing room. Before you pay them off, you can see what you can qualify for with the payments still there... and if that doesn't work, then your loan officer can play around with paying 1 or both off and see what difference it would make.