Want to buy a house even though we are in lots of debt.
March 23, 2010 8:43 AM Subscribe
My wife and I have a LOT of credit card debt and no savings. We can now afford to start paying off the debt. We'd like to buy a house as quickly as possible, what can we do?
posted by anonymous to work & money (38 answers total) 8 users marked this as a favorite
Over the past five years we racked up about 70k in credit card debt. Obviously our credit rating isn't so great any more. My wife was chronically ill and we weren't sure she was going to make it so we were a lot less than responsible. Now, she has made a miraculous recovery, and we want to get on with our lives. I recently received a large pay raise so that I am taking home $4,000 a month after taxes. Our credit card minimum payments are about $1,200 a month, so we could afford the payments on a mortgage for a $100-150k house, but we have very little savings for a down payment. We are living with my parents but we are miserable here.
Our plan is to make paying off the debt our primary focus until it's done, but we are so miserable and depressed without our own space we are willing to pay more over the long term to get a house now. As I understand it, it is possible to get a "shitty" mortgage now and in 5 years when our debt is paid down refinance into a more reasonable mortgage. Is that true, or are we doomed to live with my parents for a while longer? We have three dogs so it is impossible to find an apartment, and we hate the idea of throwing the money away renting. Please e-mail email@example.com if you need more information. Thanks.