| Question |
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Can you obtain a morgage for a home and use it to pay off bills at the same time?
My husband and I are trying to purchase our first home. We have approx. 5 credit cards. We have been pre-qualified for a morgage but, we are wondering if our credit card bills can be paid off with the morgage
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| By
dragonkeeperchick |
Posted on
10/14/06 Total Answers
7 |
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| Answers- |
| You might be able to. I used to work at a place where we did "Second Mortgages", and people paid on their debts. |
| Answer by :
beth On Date
2006-10-14 12:01:55 |
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| Generally, no. A home loan is approved for a home, not paying off credit card bills. You will be required to substantiate your spending so misappropriation of funds will be discovered and could put your loan in default.
What you are thinking of is probably a refinancing of a mortgage but the initial home loan will not allow you to pay your bills with the funds. You would have to build up some equity in the home that you are purchasing before you could pull an equity line or apply for a second mortgage. |
| Answer by :
elk312 On Date
2006-10-14 12:02:25 |
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| Only if the value of the house you are buying is a lot more than the amount you are paying. In this time of falling home prices, to borrow more than you pay for the house is a dangerous game.
Lets say you find a repo'd house and pay $50k for it, the bank values it at $90k, theoritically you could be able to "pull out" the other $40 thousand in equity through a loan.
As the mortgage companies have recently been in trouble for lending people too large a percentage of the values of their homes, and too many people have ended up owing more on their house than they could sell it for. It is getting tougher to find a bank to do something like this.
And the less equity you have to play with the more likely they will not do it. You can always wait until after you buy the house and then take out a home equity loan. But again, your house has to be valued at more than you owe on it. |
| Answer by :
Gem On Date
2006-10-14 12:07:16 |
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| It's "mortgage." And yes, you may be able to consolidate all of that into one payment, but if you try it, it may take you over the monetary limit for which you initially qualified. If you have five outstanding credit cards with big balances, I would get THOSE paid way down before taking on a mortgage. You will find the bills even harder to pay (and the expenses mounting) with a home. Sounds like you are over extended as it is. Good luck! |
| Answer by :
kittyrogers On Date
2006-10-14 12:11:41 |
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| No. Unfortunately, you can only finance up to 100% of the value of the home. Even if the home appraises for more than what you buy it for, the value is based off of the purchase price, no exceptions, until it "seasons" for 6-12 months, depending on the loan program. Until this seasoning period ends, you must use the purchase price as the value, and once this time passes you can use the higher appraised value and refinance to pay off these debts. Good luck... |
| Answer by :
Justin On Date
2006-10-14 12:17:11 |
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| some programs will allow cash back at close
-cjkloanguy@yahoo.com |
| Answer by :
CHRIS K On Date
2006-10-14 12:19:44 |
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| No, you can not include any other bills you have when you are purchasing a home and using a traditional lender -- mortgage company, bank or credit union. Some private banks (investors) will allow this. There is no law to prevent this, lenders just do not do it.
This site has many reports that will most likely answer most of your questions -- www.paynotaxesforlife.com |
| Answer by :
Pay No Taxes For Life On Date
2006-10-14 12:35:04 |
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