How do people in debt become homeowners??
I hope this doesn't seem like a stupid question, but I'd like to know how people who are in debt can become homeowners. By "in debt" I mean significantly in debt, not just $1000 or something. I mean thousands of dollars in debt, either due to student loans, car loans and/or credit card debt.
We are approximately $30k in debt; about 2/3 of that is from credit cards. In spite of this, we have good credit and have never missed a payment. The thing is, I know there are people who are even more in debt than we are, whose incomes are similar to or less than ours, and yet somehow they manage to become homeowners.
How do they do it?? How can they afford it?? How do they qualify for mortgages when they have such high payments to pay off their debts, on top of all their other expenses?? How can they do that when their debt-to-income ratios are so high???
I have the mindset that it really isn't practical to become a homeowner until you are either debt-free or have very little revolving debt (less than $5000 or so). We would LOVE to get out of our one-bedroom apartment but don't really see that happening until nearly all of our debt is paid off. Which makes us feel very depressed because we know that's not going to happen for quite some time.
Am I totally off for thinking this way?? How can WE become homeowners???
~ Jenney
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