Hi Sworm76 - simple answer is you can get a loan while you still have debt (sometimes that is even a good thing to a potential lender) BUT there are ratios. In other words, the lender looks at your debt-to-income ratio. So, the debt cannot be overwhelming by the lender's standards (same ratios exist fo rmost lenders). Examples always help. If you are making 5K/month and 2K of that is going towards past/consumer/credit card type debt the number is a 40% ratio....2/5 or 2-fifths. Probably too high. So, ask your lender what products may be good for you and see what debt you might have to pay off first to get into the sweet-spot for the debt to income ratio - usually 20-33%, BTW. Hope this helps. Cheers!