Home Buying in Dallas>Question Details

Ruger1776, Home Buyer in Round Rock, TX

I have just entered into a debt consolidation program and it only includes my credit card debt.

Asked by Ruger1776, Round Rock, TX Wed Feb 27, 2013

My wife and I are looking to sell our house and downsize into something smaller and more affordable. Will this hurt our chances with getting a loan for a new house??

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Answers

9
Larry Picchiotti’s answer
Yes. A debt consolidation program is treated the same as bankruptcy. It will disqualify you from conventional programs. FHA requires a 12 month payment history. Depending on how the items are reporting to the credit bureaus it will also lower your credit scores which will affect all loan options.
1 vote Thank Flag Link Wed Feb 27, 2013
Why pay a company for debt consolidation when you can manage it yourself?

Lynn911 Dallas Realtor & Consultant
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0 votes Thank Flag Link Wed Feb 27, 2013
FHA allows you to purchase a home while in debt consolidation after 12 on time payments. So you will have to be on the program for 12 months.

Just about any lender can help you with this..... If they know the guidelines.

Now, if the credit score takes a hit because of how things are being reported.... That can hurt your chances of pre-approval.


Tom Burris
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0 votes Thank Flag Link Wed Feb 27, 2013
it will just depends on what your credit score is.

You should do a free score check so that it will hit your credit.

Dixon
0 votes Thank Flag Link Wed Feb 27, 2013
It may. It depends on how things are being reported. Many times these companies do not pay bills on time so you need to make sure this is happening as it can mess up your credit even worse. Lenders will look at your obligations and credit to establish if they will do a loan for you so the next step for you should be to speak with a bank or broker to see what you can qualify for and make sure everything is being paid as agreed by the debt consolidation company.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
o 512.669.5599 m 512.633.4157
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0 votes Thank Flag Link Wed Feb 27, 2013
What are some good lenders to check with??
0 votes Thank Flag Link Wed Feb 27, 2013
Send me your email & I will forward you the contact information for two of the best I have worked with.
Flag Wed Feb 27, 2013
It very well could. Contact any lender of your choice and get hard answers.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Wed Feb 27, 2013
You really need guidance from a good lender. Larry is right! Debt consolidation will hurt your credit.
0 votes Thank Flag Link Wed Feb 27, 2013
It is best to check with your local lender, who can also work on getting you pre-approved.
0 votes Thank Flag Link Wed Feb 27, 2013
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