First Time Homebuyer – No Money Down and … (Is this wise?)?

I have one credit card with 15k in debt at 5% and pay $ 300 per month. I will also be a first time homebuyer and will most likely not be putting any money down. Was thinking of doing a 30yr fixed 80/20 loan (if numbers work out to be better than full 100% w/ PMI). Ideally, I would like to pay off my debt before buying a home, but cannot in this situation.

Would it be possible… and what do you think about bumping the mortgage amount up 15K to pay off the debt? In essence, I will most likely be paying more in interest since the mortgage interest rates are higher and amortized over 30yrs, but a 15K increase in the mortgage amount over 30yrs at 7% is approx. $ 100 according to the mortgage calculators.

That would free up an extra 200 that I could use to go towards the mortgage.

First, do you think it would even be possible for the lender to do this for a first time homebuyer program with no money down? And second, do you think this is a good idea?

Thanks

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