Home Buying in 43623>Question Details

Jbad30@gmail…, Home Buyer in

For the down payment I would like to put on the house I would like to buy, am I allowed to take the money from my own credit card?

Asked by Jbad30@gmail.com, Tue Jul 23, 2013

My card has a high limit and I have checks that I could write and deposit in my bank to use at closing. I am receiving an FHA loan, Is this possible to do?

Help the community by answering this question:

Answers

2
BEST ANSWER
No that is not permitted and could cause your loan to be denied. The following is a list of permissible sources of funds for FHA mortgages:

· Savings and checking accounts · Cash saved at home
· Cash accumulated with private savings club · Savings bonds
· IRAs · 401(k) and Keogh accounts
· Stocks and Bonds · Thrift Savings Plans
· Gift Funds · Sales proceeds
· Sale of personal property · Commissions from sale
· Trade Equity · Rent Credit · Sweat Equity
· Collateralized loans · Grants and loans
· Employer’s Guarantee Plans · Employer Assistance Plans

In addition, any funds used for closing must be SOURCED, meaning you need to document with a paper trail where they came from. The lender also has the right to request additional documentation if the source of funds seems fishy. For example, if your parents "gift" you money for a down payment, the lender will likely ask to see a copy of mom and dad's bank statement to prove they had the money to give you. In other words, they themselves cannot just take a credit card advance and deposit it in their account and then gift it to you.

Does this make sense? You can thank the Patriot Act for this. Ever since 9/11 the government has made lenders keep an eye on transactions like this to make sure people aren't laundering money through real estate transactions. Hope this helps!

Tony

Tony Grech

Loan Officer -NMLS #977416
WCS Lending, LLC
Tony.Grech@WCSLending.com
Phone: 866.936.5363 ext. 278
1 vote Thank Flag Link Wed Jul 24, 2013
No, that is one option that is not permitted by your Lender. It's always best to ask your lender about questions of this nature. I have seen people no longer qualify because of decisions they made on their finances during a loan or escrow process. Always best to check with your lender.
0 votes Thank Flag Link Wed Jul 24, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Ohio > Lucas County > Toledo > 43623 > Home Buying in 43623 > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer