Home Buying in Chula Vista>Question Details

Ens_girl, Home Buyer in Chula Vista, CA

Can I do cash advance on my credit cards so I can purchase a house? I only have 50K and I want to buy a small condo of 100K.

Asked by Ens_girl, Chula Vista, CA Wed Jul 7, 2010

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Cory La Scala’s answer
Are you saying that you have $50k in savings, and want the cash advance to pay for the rest? If the condo qualifies for a conventional loan, you could pay a little less down, and use the rest for any closing costs the seller won't pay (if you ask them to pay some), and any repairs a property might need. If you only had to finance $50k, your payments would be very low.

If, however, you're asking to pay a 50% down payment with your credit cards, you'd have to pay the super high interest rate for the credit/cash advances, plus your monthly payment on a $50k loan (principal, interest, tax, insurance, HOA fee) - but I've never heard of a loan that would allow you to charge your down payment! Plus, lenders pull your credit right before closing to see if there have been any changes. A $50k cash advance equal to 100% of your available credit would qualify as a significant change to your credit AND overall scores. I've known investors who should know better get turned down because they charged carpet for their new purchase!

I can give you the contact info to a couple of lenders that work with first time buyers.

Let me know if I can help!
Cory
1 vote Thank Flag Link Wed Jul 7, 2010
Not if you plan on financing the remainder. You cannot borrow money to use as down payment. If you are actually asking if you can get a cash advance on your credit card to "pay cash" for the entire thing, that would have to be the most ridiculous idea I have heard in a very long time. You may want to read your credit card terms on what your cash advance interest rate is, you'd be better off asking Guido for a short term loan.

If you have 50K available in revolving credit, you should have no problem getting a mortgage for 50K from your bank or credit union at a decent rate.
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Wed Jul 7, 2010
Hi Ens

Use you can do an advance on your credit cards to get the balance of $50k.
It might be better to take a loan out for the other $50k.

What is you credit like? If it is good you should get a loan easily when you put $50k Down.

God luck.
Perry
0 votes Thank Flag Link Mon Oct 18, 2010
Yes you can..it all depends on debt ratio..call me for more info.

Vincent Villafranca
Prudential CA Realty
619 972 898
0 votes Thank Flag Link Mon Oct 18, 2010
You may be able to, but it is not recommended. There are some programs you may qualify if you speak with a mortgage broker which will give you a lot lower interest rate.

Patrick A. Hale, CDPE, RSD
Real Estate Broker & Investor

REO & SHORT SALE EXPERTS WITH A MISSION TO:
"Help Over 360 Distressed Home Owners Avoid Foreclosure"
If You or Someone You Know is in Financial Distress Visit: http://www.SDRealEstate360.com
Web Reference: http://www.reofusa.com
0 votes Thank Flag Link Thu Aug 12, 2010
No. Borrowed money will disqualify you for a traditional loan, if you will be seeking one. Credit cards would be even more expensive than hard money. As mentioned if you don't qualify for a loan most hard money lenders will lend up to 60% of value. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Aug 11, 2010
It depends, you said you have 50k cash would you be cash advanceing 50k more to pay all cash for the condo?
Or would you still need a loan, if so,it all depends on Debt ratio if your debt ratio is acceptable to the lender that you are using after you cash advanced all the money you will fine. Getting a mortgage loan is not rocket science:) it all depends on your debt ratio some lenders also require you to have monthly reserves of possibly 3 to 6 mortgage payments in the bank. Then again if you are paying all cash it doesnt matter for you.
Web Reference: http://www.mrotayranch.com
0 votes Thank Flag Link Wed Aug 11, 2010
Ens-girl, you could but why? Many of the agents are in agreement here. You should consult with a loan consultant from a direct lender and see if you qualify to purchase this home with the down payment you have. The interest on a cash advance from your credit cards would be really expensive and can probably be avoided. If you finance your purchase with a home loan (mortgage), then you should be able to realize a nice tax deduction. Remember to consult with a licensed tax preparer or CPA for more details.

All the best!

Ryan Smith
0 votes Thank Flag Link Tue Aug 10, 2010
You may want to go with a hard money loan. It does have a higher interest rate, but at least the interest rate will be less than credit cards. On a whole it doesn not sound like a good idea to borrow on your credit card, but it is best to consult a mortgage broker. Good luck to you!
0 votes Thank Flag Link Tue Aug 10, 2010
Rather than even considering borrowing such a high amount on a credit card--why not visit with any qualified loan officer(s) first, and see exactly what options you may have--do keep in mind that current mortgage rates are very good and in the end you will save money.
0 votes Thank Flag Link Wed Jul 7, 2010
Hi there,

We recommend you call a lender and ask if you can qualify for a loan. They are best suited for financial discussions.

Best to you,

Mark and Kari Shea
Real Estate Experts Serving San Diego County
Specialists in Investment Properties, Foreclosures, Short Sales,
Development Opportunities & Traditional Real Estate
0 votes Thank Flag Link Wed Jul 7, 2010
If you had $50,000 in open credit you could tap on your credit cards you could borrow from them,. however the fees and interest rates would be out of control, if you have thet good of credit you can tap that much money on a credit card, with 50% down you should not have a problem getting a fixed rate mortgage for the balance so you can purchase this condo

Your first step should be to meet with a local and trusted mortgage broker, they can prequailify you at no cost to you and let you know what programs you may quailify for.

Good luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Jul 7, 2010
Gregorio hit the Nail right on the head!
0 votes Thank Flag Link Wed Jul 7, 2010
If you will be financing the balance with say an FHA loan they will want to see where that money is coming from. and if its "Seasoned". That will then reflect a new debt to income ratio.


Nick
Web Reference: http://www.nickruiz.com
0 votes Thank Flag Link Wed Jul 7, 2010
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