Can I Buy a House With Credit Card Debt?

Short answer: Yes, you can buy a house with credit card debt. Lenders look at your debt-to-income ratio (DTI), credit score and payment history rather than whether you owe anything at all. High card balances raise your DTI and can lower your score, so paying them down before applying often gets you a better rate.

What lenders look at

• DTI: your monthly debt payments, including the new mortgage, divided by gross monthly income. Card debt counts at the minimum payment. Many conventional loans prefer 36% or less, sometimes allowing up to the mid-40s or higher. Calculate yours.
• Credit score: high utilization drags it down.
• Payment history: recent late payments are a red flag.

FHA loans and DTI

FHA loans are often more flexible. HUD's FHA handbook uses benchmark ratios of 31% for housing costs and 43% for total debt, with higher ratios allowed when there are compensating factors such as reserves or strong credit.

Before you apply

1. Pay cards down to lower utilization (under 30%, ideally lower).
2. Avoid opening new credit for several months.
3. Keep savings for the down payment, closing costs and reserves; don't drain them to clear cards completely.
4. Get preapproved to see where you stand.

The CFPB's DTI explainer walks through how lenders calculate it.

Sources

• CFPB, What is a debt-to-income ratio?
• HUD, FHA single-family housing policy handbook
• CFPB, Credit reports and scores

Last reviewed October 12, 2026. This article is general information, not legal, tax or financial advice.