Should I sell my car to get a higher home loan?

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My husband is the only one working now, we are trying to take advantage of the first time home buyer tax credit, but we only qualify for $165,000 USDA, the broker is recommending us to sell our car (2006 Duran go, family car) to get approved for $240,000. If we do that we will loose about $5000 that we paid up front for the car. I should be getting a job soon, I hope. Should we just rent for another year?

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3 comments to Should I sell my car to get a higher home loan?

  • Bill  says:

    Well, the car will do nothing but loose money. In most cases a home will not. I sold a nice car back in the 90s to buy a new home, the money I lost on the car was made back in a year by the house resale price.

    I may be able to assist you in the job market, just let me know

  • My Take on It  says:

    You cannot base your income on the words “soon” or “I hope”. You have no idea when you will be getting a job and there is a HUGE gap between buying a house for 165k and 240k. I wouldn’t sell the car personally. You may be upside down in the loan still and you would lose more than you would gain. Stick to whatever you can afford just on your husbands income.

  • Rudy  says:

    You are looking to over extend your selfs. STOP IT.

    Pay off the car and buy a 165K home, if even that much. Tell the broker to shut up and find you a home that you can afford. And by afford I mean you sit down and figure out how much YOU and you husband feel you can afford and use that number, not the one the broker feels you can afford.

    Your Mortgage should be max of 28% of you monthly income.

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