Is there a mortgage that will allow me to pay off other debt?

Question by Anna Z: Is there a mortgage that will allow me to pay off other debt?
Basically, when I apply for a mortgage to purchase a house, am I able to get a greater amount than needed in order to pay off other debt (eg. credit cards). I know this can be done with a home equity loan or when refinancing, but is it possible with a fresh mortgage? Thanks.

Best answer:

Answer by steve m
If your property appraises for for more than the selling price you can. Some lenders were doing 110% until the big fall that is going on now tighten up their guidelines.
This is really bad for the buyer you are upside down in the house from the start.Don’t know where you live but most markets are fixing to be hit with lots of foreclosure’s.You can get some good deals at that time.just be care-full we call it buyer beware.You really need a home inspection if you don’t know how to look for HIDDEN problem’s.

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3 Responses to Is there a mortgage that will allow me to pay off other debt?

  1. jim r says:

    Usually not, but there are some loans out there that will allow you to boorow 110% of the purchse price for that purpose, and it depends on which state you are in, and the lenders available, I would suggest a mortgage broker rather than your neighborhood bank, the broker should have that to offer.

  2. ShouldBeWorking says:

    It will depend on the value of the home, and how much you are looking to borrow for the actual mortgage, and on the policy of the company.

  3. judy b says:

    if the house is worth it . yes you can and if you have the means to pay it back. foreclosures are high and banks are nevrous

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