Borrowing to come up with the down payment

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

I was reading that you are actually allowed to borrow for a down payment if the money is secured by another asset. For example, if you already own one house that you intend to rent, you could get an equity loan for a down payment on another home. Do you know of any other creative ways that people have been able to borrow for the down payment?

chow · Posted: Mon Feb 07, 2005 12:39 am Post subject:

Most lenders will accept secured borrowed funds, or a loan from a 401K or another account, as long as the DTI is acceptable.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Bridge loans aren't too bad, basically have a 1 yr balloon i/o line of credit. I'm not sure on this one as a gift or not, but if you have the capability to have a gift, your ratio's are in line, and you have a borrower that needs to build up some more credit, there are some banks that offer a loan to you if you put the money down. lets say, 3k. You put 3k in the bank, you get 3k back. It's a guaranteed loan so no matter what your trashed up credit looks like you can have the loan, and it's at a set rate usually. I've found it a fun thing to tell people about around here because we have a lot of people that need that extra trade line.