Posted on: 10th Dec, 2010 04:02 am
Hey everyone,
I currently have a credit score of 680 and I would like to buy a house soon. I am a first time buyer and I don't have much of a down payment saved up yet. Would it be better to save all the money I can to go towards the down payment or put more towards the $9k credit card debt?
Also, my wife has a 10k available balance credit card with 0% interest for a year, what if I just transfer my balance to hers so I would be debt free under my name for applying for the loan?
How much do I need minimum for decent rates? Is 3-5% going to be too little?
Thanks!
John
I currently have a credit score of 680 and I would like to buy a house soon. I am a first time buyer and I don't have much of a down payment saved up yet. Would it be better to save all the money I can to go towards the down payment or put more towards the $9k credit card debt?
Also, my wife has a 10k available balance credit card with 0% interest for a year, what if I just transfer my balance to hers so I would be debt free under my name for applying for the loan?
How much do I need minimum for decent rates? Is 3-5% going to be too little?
Thanks!
John
FHA mortgage requires a minimum down payment of 3.50%
Your credit score is fine for a FHA mortgage.
If you put money towards the card debt, it will take longer to save to buy the house.
If your income is high enough to qualify with the mortgage and the card debt, it is not necessary to transfer the debt to wife's card, but, if that is at 0% you may want to do it anyway.
Your credit score is fine for a FHA mortgage.
If you put money towards the card debt, it will take longer to save to buy the house.
If your income is high enough to qualify with the mortgage and the card debt, it is not necessary to transfer the debt to wife's card, but, if that is at 0% you may want to do it anyway.
Thanks John for your response...
What are the downsides to an FHA loan? How much of a down payment would I need to get a better type of mortgage?
What are the downsides to an FHA loan? How much of a down payment would I need to get a better type of mortgage?
In order to get a FHA mortgage, you'll have to pay a down payment of 3.5% - 5%. In order to get a conventional mortgage, you will have to pay a down payment of 20%.