Can I use a cash advance for a house down payment?
Question:
Answer:
In California, No because you are not allowed to borrow money for a down payment. Maybe if the bank/lender you are getting the mortgage loan from doesnt know, but thats pretty risky doing something like that, and they always want to verify where the money came from.
No you cannot. That loan is effectively a second lien against your home. Mortgage always had to be in the first position. Just use that 25k that you already have.
Curm is wrong. The seller won't know but the bank you get your mortgage from will. The money must be properly seasoned and accounted for
Of course...the house seller doesn't know where your money comes from.
Banks usually want to know if you have cash to close the transaction. It means you need to have applied for and have the money in your account before you apply for the loan. It also means having that much personal loan will bring you down your credit rating somewhat. Instead, get a home equity loan with the bank you are applying mortgage from or try for 0 down payment plan offered by some lenders like countrywide.
not usually depending on your financing, conventional financing frowns on that because they see it as another financial responsibility there for making it harder for you to make your house payment but if you have private financing you might get someone to be okay with it depends on risks, equity in property,your financial ability how much of your hard earned money you have invested etc
You'll be paying that off for quite some time. Consider the typical mortgage rates right now are between 5.87 - 6.24%. Use the card for maybe $1,000-3,000 as the earnest money deposit. Remember anything that is long term debt (six months payments or more), will be considered in your qualifying. If you were to draw $25,000 from the card, your qualifying ratio would go down drastically.
Why not use the 25,000 that you say you have for the down payment and know that you have the cash advance as a fall back in case you need money after closing.
If you can't get the loan with less than 50,000 down then you need to look at cheaper houses. Would you really want a mortgage and a credit card debt @ 18.99%?
You can, but i would advise. Reason being if you did this you would literally have to pay 2083.33 a month for a year to pay off that 25K in full. That's not including your mortgage payment and whatever other obligations you have relative to debt. Wait until you have real cash in hand that is yours to use. Don't get yourself in more debt. Having a houise is great, but it will come in time.
Best thing to do to save money quickly is save 10-50 dollars a day from you paycheck and don't touch it for a year.
Look if you could save 50 a day at 14 days in everypay check that is 700.00 a paycheck and 2800 a month. After a year you would have 33600 to put down on your house, completley Interest free.
Go ahaed try a calculaton see what you can AFFORD!
Good Luck!
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