Home Equity Loan

Can you receive one loan for home purchase and debt consolidation?

I would lke to know if there is a type of loan that will allow you to consolidate credit cards, personal loans, and purchase a home at the same time. I am currently a graduate student with student loans as well.

Public Comments

1. The only way to do this would be to borrow more than your homes value. Some lenders used to do this, and I am sure a small handful still do if the home is in the right area and you have the right credit, but since home prices are falling, I doubt they will do it. You may be able to get 95-100% of the home value loaned, then you can put more towards debt or even get a credit card with your bank that you can do a balance transfer to and consolidate your loans, but this is not guaranteed to lower the interest rate. The other thing to be aware of with a consolidation loan (using home equity) is that you are likely lengthening the term of the loan and this is why the payment decreases dramatically. However, this also means you pay down less principle every payment and end up paying more interest over the course of the loan, unless you continue to pay the full amount you were paying before.
2. Simple answer: No. Since the explosion and collapse of the subprime market, lenders are much more stringent now than in the past. As a result, you will be lucky to get a mortgage with 10% down, and financing the remainder. In order to do what you asked, you would need to get more than the cost of the house (house + cc+ per loans = X). Unless there is some special situation, ie the value of the house is significant less than you are borrowing, then you will be unable to get what you have asked. Good Luck
3. Some Mortgage companies still do these types of loans if you have excellent credit. However, as others have stated, it is almost impossible due to issues with the subprime markets. More importantly, do you want to secure personal debt with your house? You then have your home tied to your debt when you can look at other options such as a Debt Management program which can help combine all your personal, non-secured debt, into one monthly payment at a lower interest rate so that you save money and get out of debt quicker. I know many people have heard horror stories about Debt Management companies over the years, but I have worked with a company that has been around for many years and has an excellent reputation. If you would like more information, feel free to contact me at: info@helpmycreditweb.com. They also have student loan consolidation programs if you haven't already consolidated them. Just email me if you would like more info or need any help. Have a wonderful day.