<prompt> Human: I am renting a house that I really like for 1100mo. They will sell me the house for 130k. I have 150k cash in the bank, but I also will owe the IRS about 40k after I file in october extension. I have about 22k in Student loan debt with avg 6.3 interest. No other debt.I cant get a loan because my credit score is like 640 and Im self employed. I will probably clear 250k-400k profit from my business this year. I feel like renting another year is the correct option, but I lived broke for so many years, I feel obligated to lock this in while I can so that no matter what happens, I got a roof! So... buy the house in cash or rent another year and re-evaluate?  <response>: If you continue to rent, how much money can you save each month? Do you have a separate emergency fund in addition to the 150,000? Have you been paying quarterly taxes this year or saving for expected taxes that will be due in April? Assuming your income meets exceeds expenditures including rent and taxes and you have no emergency fund. . .Savings: 150,000Debts Obligations: 62,000Necessary emergency fund: 6 months, since you have a business and business could change rapidly, with no access to unemployment x 3,300 3x rent as a guess at your minimum monthly needs 19,800This means you have 68,200 available to spend on the house. That is less than they are asking. I dont think you can buy the house if you cannot secure a loan. If you are going to have 250,000 in profit, it would make sense to 1 Pay your taxes and pay quarterly taxes to avoid a penalty. 2 Pay off the 6.3 interest student loans. You make too much to get a tax deduction and 6.4 is high interest. 3 Do whatever you can to raise your credit score. 