Should I use credit for a down payment on a house?
Well I know I shouldn't but say I go to oklahoma and find a house for 80 to 100 thou and have 10,000 saved up and then use 10,000 in credit so that im putting a 20,000 dollar down payment on the house. I use the Gi Bill cause I'll be out of the miltiary and the gi bill and reserves will pay on the house loan. Then I will get 2 roommates to pay, then I will pay with my job? Does that sound good to you???????
2009-08-13T14:20:23Z
Ha Thanks for your answers they are really good, Yeah I probably wont do it. I'm just trying to figure all this out before I actually get out you know. I can't believe I'll be trying to buy a house at 21 though. I always thought I was going to be 40.
2009-08-13T14:22:58Z
Actually I heard the New post gi bill will pay rent but you might have to have dependants. I don't know but I will make my mom a dependant I don't care I'll get it.
mykatesmom2009-08-13T15:01:04Z
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Most mortgage lenders will not allow you to borrow the down payment. Either you have to have it on hand for a specific time period before purchasing the home, or you have to have a letter from someone stating that it was a gift, not a loan.
Don't use credit for a down payment because the interest is too high. Besides, the Veteran's Administration (VA) has strict rules when buying a house and they won't let you use credit. One of the VA loan benefits is no money down so take advantage of it and save your $10k. The GI bill will not help you pay your mortgage (unless I misunderstood you and you are referring to educational benefits). And be careful of roommates. Good luck!
That credit will count against you as far as your debt-to-income ratio. But, if you can qualify for a second mortgage of $10K, you can easily buy a $100K house with an $80K first, a $10K second, and a $10K cash down payment. In fact, with that second providing the rest of a 20% down payment, you don't have to pay private mortgage insurance (PMI).
You should go to a mortgage broker or lender and see if you can qualify for that. They'll also tell you what you can afford to buy and how much it will cost each month, so you know what your price range will be when looking for a place to buy.
Your brilliant idea isn't going to work as planned.
You are putting $10K down. Period. Either you qualify to borrow the rest or you don't.
Don't play games and borrow money from your credit cards to increase your down payment.
First the interest rate on the cards is 15-30% while the mortgage is 5%. Why pay triple interest!
Second, lenders take your debt load into account when they grant mortgages. If you can't handle $90K, they aren't going to let you charge up $10K and borrow $80k.
thats elementary previous stupid? you pick credit no longer debt . sparkling credit that the financial corporation will approve a loan no longer laugh all a thank you to the ????????? Did you ever hear of somebody paying for a house with a promise to pay it? And the banks seem ast all and each thing in basic terms because of the fact they strengthen you a shrink they might desire to understand you have materials no longer a mastercard possibly a co signer yet all of us who has a mastercard would not get to apply it for a down cost thats so ******* nuts