Home down payment question?

Theoretically you cannot do it. Mortgage companies will not accept a credit card because in reality you are not gaining equity and you are not improving your debt to loan ratio. You are transferirng your debt from one source to another. Because of this, mortgage companies will not allow you to use a credit card.

There are some people who have taken a cash advance through their credit card and used that to apply that to the down payment. Any financial expert would say NOT to do this, but it has been done. It's one way of getting around the system, but highly risky and your mortgage company will frown upon this.

P.S. - Your monthly payments cannot be made with a debit card. It must be either an EFT (electronic funds transfer) or check.

I've never heard of this done. Theoretically, you're supposed to have the down payment on your own, it should not be borrowed (which is what it would be with a credit card). And escrow specifies a certain amount in cash, so I don't know how they'd account for the fees taken out by the credit card company. I suppose you could get a cash advance and use that, but what an expensive way to borrow money, compared to a home loan.

I have heard of people doing this.. but have no idea why you would want to do this.. interest rate on credit cards are sky high.. you will need to think about that.. might be better to start saving for that down-payment.. as if you were paying it off on a credit card.. If you have a credit card with enough money for a down payment.. 20,000.00 or more.. these days.. your credit must be good.. why not save up.. sounds like you could get in over your head fast.

Yes, in some cases, but you can't because you are just coming out of BK. You must rebuild your credit and get your credit score up into the seven hundreds to get a 100% cconventional loan, maybe six hundred eighty will do it on a full document, but it will be tough. FHA offers you your best choice, but you need at least two years in between the discharge and the purchase, unless your BK was a Chapter 13, then you can buy now, if you paid the chpt. 13 on time during the whole time. You will have to get a buyers assistance program in order to go 100%, and that is when the down payment is financed into the mortgage, as well as most of the closing costs and prepaid items. Contact your local mortgage company and you probably want to talk to two of them at least.

If you need to put the down payment on a credit card you can NOT afford a home.

no, as i am not aware of anyone who will accept a credit card for a down payment, and if its a large enought down payment it could cause your debt to income ratio to go out of whack. its normally a check and every once in a while cash, which has to be put into an escrow account if a real estate agency is involved, and held to closing,

Not a chance.

no