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Can I get a car loan with a mortgage?
My wife and I just bought a house and took out a mortgage. Can I get a car loan if we already have a mortgage to pay every month?
Matthew Macgugan · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on your new home! The short answer is yes, you can still get an auto loan if you have a mortgage, though lenders may be more hesitant to approve your auto loan if your debt-to-income ratio is too high.
Your debt-to-income ratio is the amount of debt you take on with car loans, home mortgages, utility bills, or credit card debt compared to your gross monthly income used to satisfy these debts. A high DTI ratio can signal poor money management, which reduces the amount lenders are willing to loan you. It may be best if you wait until you’ve settled or paid down other debts before taking on a new loan.
You may still be able to get approved for a loan with a higher DTI ratio by finding a cosigner. This way, you can combine your income with the person who has agreed to cosign your loan, making you seem like less of a risk to lenders. That said, if you aren’t able to meet your car payment, the cosigner is assumed to be fully responsible for the loan, which may damage their credit history.
If you’re looking to save money when purchasing a new car, download the
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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