Ca i use my credit card to make a down payment for a house?

Question

can i use my credit card to make a down payment for a house?
credit line $15k max and no balance on CC. can i use it for a down payment?

Answer 1

I know who did it and he survived well, but he did risk getting in debt, he cashed $35.000 together with his woman, bought the house and they managed to keep it all at bay till he was almost under then he just rented every available corner of it and now he owns three. Very risky unless you plan it well.
check these links, there's plenty
of advice throughout if you have time to read:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
if it helps please remember me cheers

Answer 2

thats plain old stupid? You need credit not debt . Clear credit that the bank will approve a mortgage not laugh all the way to the ????????? Did you ever hear of someone buying a house with a promise to pay it? And the banks look ast all and everything JUst because they extend you a limit they need to know you have resources Not a credit card maybe a co signer
but everyone who has a credit card doesn't get to use it for a down payment thats so ******* nuts

Answer 3

If your credit card is maxed out it could lower your credit score and will definitely raise your debt to income ratio. Both factors can affect your ability to get a good interest rate or to even quality for a loan. There are lots of 100% financing programs available and sellers are often willing to help with closing costs especially at this time of year and with the housing marketing cooling off.

Answer 4

http://money.cnn.com/2006/09/07/news/economy/housing_forecast.reut/index.htm?postversion=2006090713
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814

As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.

Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.

If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.

For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.

Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.

And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.

Answer 5

Yes you can, but not directly. You can take the cash as a cash advance (not recommended) or as a balance transfer to another card or a direct deposit into your bank account (certain cc's only).

Also you cannot tell the mortgage company thats where you got the money so you need to season it by borrowing it at least 2 months before you apply for the loan.

I have used this method successfuly for many year but it requires diligence to make sure your interest stays low.

Answer 6

With $120k in earnings there is not any reason you're able to no longer be able to the two make a contribution on your 401k AND shop for a house. Remeber, the 401k money are taken out pre-tax. as a result, you will see purely a minor hit on your base line while you're making the contribution. So back, unsure why that's an the two/or decision. residing in CA myself i comprehend that's attainable to do the two- you are able to could decrease decrease back on different expenditures if it incredibly is rather a controversy.

Answer 7

I wouldn't/. The rate of your house loan is probably going to be lower than the rate of your credit cards. Look at it this way: it might SEEM convienient, but in the long run, it's going to cost more, and you may sell your home before you pay the cost off of the card. My advice: use cash.

Answer 8

If you can withdraw that cash you can..but you ought to know that at 21 percent interest on the card you are asking for major trouble.

Answer 9

They wont accept it , it cost them percentage to accept credit card.

Answer 10

It depends. If its seller financed, it would probably be ok, but the bank will consider your increased monthly obligation when qualifying you.