Posted on: 26th Mar, 2011 01:14 pm
My fiancé and I are planning to buy soon after our wedding in July. We are currently renting, and have 2 auto loans; my vehicle payment is $400 mo with about 16 months remaining, and hers is about $350 mo with about 30 months remaining. Last year before we signed a 1yr rental lease, we were looking to buy and were approved for around $300k. In the months since, our credit cards have been paid and we will be debt free aside from the auto loans. We are first time home buyers in the Washington DC area, and will probably go with a FHA loan. We are looking to increase our mortgage approval amount, and would like to know if refinancing our vehicles for a lower monthly payment amount would allow us to be approved for a higher mortgage amount?
Hi WVBrandonDC,
Refinancing your vehicles won't help you qualify for a higher mortgage amount. If you pay off the debts faster and lower your debt amount, then your debt to income ratio will improve and you will be able to qualify for a higher mortgage amount.
Thanks
Refinancing your vehicles won't help you qualify for a higher mortgage amount. If you pay off the debts faster and lower your debt amount, then your debt to income ratio will improve and you will be able to qualify for a higher mortgage amount.
Thanks
Of course you qualify for a larger mortgage if the auto loan payments are less.
What is the amount of the down payment that you plan to make?
The minimum FHA required amount of 3.50% or larger?
What is the maximum FHA mortgage permitted in the place you plan to buy? When you say the Wash D.C. area, do you mean Wash D.C. itself or some surrounding county?
Qualifying for a larger mortgage is ok as long as you do not exceed the maximum FHA mortgage amount, and that depends on the county in which you purchase. It does no good to qualify for a higher mortgage if you exceed the maximum FHA mortage amount.
What is the amount of the down payment that you plan to make?
The minimum FHA required amount of 3.50% or larger?
What is the maximum FHA mortgage permitted in the place you plan to buy? When you say the Wash D.C. area, do you mean Wash D.C. itself or some surrounding county?
Qualifying for a larger mortgage is ok as long as you do not exceed the maximum FHA mortgage amount, and that depends on the county in which you purchase. It does no good to qualify for a higher mortgage if you exceed the maximum FHA mortage amount.
