If I took personal loan (not a mortgage) and paid with this money for the house, is it still consdered as cash offer?

Asked by Teri2012, Las Vegas, NV Wed Aug 17, 2011

Im asking because there are some properties that are cash only. And I wonder if my offer would be accepted if the money is borrowed.

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7
Debra (Debbi…, Agent, Livingston, NJ
Wed Aug 17, 2011
If you are making a "cash offer" you are indicating you have the cash in hand, and are not relying on a mortgage to make the purchase.

Yes, it would be considered a cash offer. Once the money is in your pocket - it's yours !

My only advice to you is to make VERY certain that "personal" loan is a sure thing - actually, make sure it's a done deal!....... make sure you already have the loan, and the money is readily available to you. As Mike mentioned, you may be required to show proof of funds, depending on the circumstances.

Good luck!
2 votes
Jesse Garcia, Agent, Paradise Valley, AZ
Wed Aug 17, 2011
If you have the money up front, your offer for the house is still a cash offer. The seller will get their money without having to wait for you to get approved for a mortgage.
2 votes
Michael Emery, , Minneapolis, MN
Wed Aug 17, 2011
When you make a 'cash' offer on a home, the seller (often bank owned homes) will require proof that you physically have ALL the cash in the bank or they will reject your offer. This is called 'proof of funds' Proof of funds can be a monthly bank statement, a print out from your online account or a letter from the bank saying you have sufficient cash funds to make the deal.

As long as the money is in the bank on the day you present the offer, it's doubtful that they will care whether you borrowed the money or raided the kids piggy bank.
2 votes
Abu Musa, Agent, New York, NY
Wed Aug 17, 2011
when Seller asks for cash offer if you pay seller cash then this is a cash offer.Now if seller wants prof of fund and you are able to give satisfying prof you are good to go.But why do you want to buy that real estate when you do need to borrow cash you should better think it twice.
1 vote
David Cooper, Agent, Los Angeles, CA
Wed Aug 17, 2011
That personal loan will carry a much more exspnsive interest rate than a mortgage. You should probably refie, once you own the property and save big on the interest rate.


David Cooper Foreclosure Specialist with 35 Years Investing Experience. Receive a FREE List of Low-Priced, Bargain Homes in Nice Neighborhoods with Cash Flow. GO TO Website or Call +1-702-499-7037
1 vote
How can Teri2012 refie if he/she doesn't own the property? What if Teri is renting right now and doesn't own property? This is probably why Teri is asking the question.
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Mark Fleysher, Agent, Las Vegas, NV
Wed Aug 17, 2011
Hi Teri,

If you are using a personal loan that states you can use it as cash, then yes, it's like a cash purchase, as long as you already have the credit line and there are no contingencies. Read the fine print, it may state something about using it for the purchase of real estate.

If you can use it as cash, you should literally be able to write yourself a check, and have the money deposited into an account, and then it IS cash.
1 vote
David Cooper, Agent, Los Angeles, CA
Wed Aug 17, 2011
Teri2012. I don't know the interest rate or loan repayment ammount, but that personal loan is costing you a lote more money than a mortgage. Is there a reason to use high interest loan to buy property


David Cooper Foreclosure Specialist with 35 Years Investing Experience. Receive a FREE List of Low-Priced, Bargain Homes in Nice Neighborhoods with Cash Flow. GO TO Website or Call +1-702-499-7037
0 votes
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