Rolling debt into mortgage. Should I?

2 Replies

Hi. My wife and I recently ran into an issue that resulted in us accruing $18k of credit card debt. In an attempt to get this debt down because we had goals on purchasing our first home (no more than $220k) within first few months of 2020. My question is, should we consider rolling our credit card debt into the mortgage? What does that process entail and look like? My credit score is above 750 while my wife's is about 680. Thanks in advance.

Unfortunately you cant roll debt into a mortgage on a purchase. You can only do that on a cash out and to do a cash out refinance, you will have needed to be on title for at least 6 months and will have to have the equity based on a max. of 80% owner occupied on a conventional loan. Or 85% on an FHA loan.

The other alternative is a HELOC after you close the purchase. Some lenders on the HELOC will allow you to go up to 100% of the equity with no on title seasoning time?

I hope this helps?