New house//used car

[Anonymous]

I need some advice.  I am in the process of putting my house on the market and want to buy another house.  (Next 6 months).  I am trying to hold off on buying a new car.   (Car currently has 202,000 miles) The only debt  I have is a credit card $150 balance with FICO scores of 701,698,699.  Will I be okay to buy a new car up to $16,000 or should I hold off?

Thanks

[Anonymous]

We bought a new (to us) car in February and are in the process of buying.  The vehicle was $16000 and all payments have been on time but I'm not sure it's really helping OR hurting us at this point.

[203bravo]

it's really going to depend on what your current income and debt load is... can your DTI ratio take the extra payment and still be within UW guidelines. 

[Shogun]

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@203bravo wrote:

it's really going to depend on what your current income and debt load is... can your DTI ratio take the extra payment and still be within UW guidelines. 

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Good advice there!

[BrianB_The_Loan_Professor]

It will not hurt chances credit wise if you get a car but as mentioned will it hurt your ratios - for fha you need to be at 50% (gross monthly divided by all minimum payments including housing) or less and your scores would be fine

For conventional the ratio should be 43% or less and the better your scores the better the rate

B