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NonSufficientFunds
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Registered: ‎04-09-2013
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Re: Buying a house with credit cards

If the house is really cheap, and you don't want do deal with a mortgage, you might consider seeking a loan from P2P lending organizations, like "Prosper" and "Lending Club" - interest rates are similar to credit cards, but the terms would be much more managable, and they would front the cash.

 

 

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calogan
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Registered: ‎02-22-2012
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Re: Buying a house with credit cards

Depending on which credit cards you have, Balance Transfer checks can be used for just about anything - assuming the company you're paying takes a check.

 

Of course beware, balance transfer checks have their own terms and unique fees in many cases, although I often get 0% APR balance checks for one of my BofA cards.

 

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Revelate
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Re: Buying a house with credit cards

AFAIK most purchases of this type typically require cash more likely cash equivalent (cashiers check)

Other than the idea of writing balance checks to yourself, there's likely very limited methods for doing this using your credit card.

Typically all of these either at auction or direct purchase tend to go this route to my knowledge. Was looking at this recently out in my neck of the woods, but I'd have to beggar myself to come up with the amount of cash required. I can hit 20% on a nice property without digging into retirement funds, but full cash on what goes for fixer upper prices ugh.

Some sort of alternate financing is likely the way to go, Prosper or other personal loan. Mortages won't be underwritten on this sort of sale to my knowledge.
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webhopper
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Re: Buying a house with credit cards

[ Edited ]

Revelate wrote:
AFAIK most purchases of this type typically require cash more likely cash equivalent (cashiers check)

Other than the idea of writing balance checks to yourself, there's likely very limited methods for doing this using your credit card.

Typically all of these either at auction or direct purchase tend to go this route to my knowledge. Was looking at this recently out in my neck of the woods, but I'd have to beggar myself to come up with the amount of cash required. I can hit 20% on a nice property without digging into retirement funds, but full cash on what goes for fixer upper prices ugh.

Some sort of alternate financing is likely the way to go, Prosper or other personal loan. Mortages won't be underwritten on this sort of sale to my knowledge.


You are correct!  Lenders require appraisals.

 

One option would be to get a 203k (otherwise known as a construction) mortgage... Its basically a mortgage for fixer uppers. Once the place is fixed up, then the mortgage can be refinanced into a normal mortgage once the repairs are made.  Only certain repairs can be made using this type of mortgage, and you have to have estimates for all of the work you want to do before hand.

 

In this way, you borrow both enough to buy the house, plus enough to make the needed repairs


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Revelate
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Re: Buying a house with credit cards

Thanks Webby! I didn't know those even existed.

I was looking at it from a policy angle, and I may be mistaken in my post thinking about it. I need to research it more, just that foreclosed/REO properties around here are still unaffordable sans mortgage that I stopped looking at the first hurdle but that may only apply to auctions here. Not sure
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webhopper
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Re: Buying a house with credit cards

Rev, if you're serious about the investor route, take a look at http://www.homepath.com/

 

Fannie Mae REOs can be bought using a homepath mortgage.  Listings on the fannie mae site are eligible for investor Homepath Mortgages after the initial 15 day "First Look" period.

 

HomePath Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors.  Go here for the investor page at fanniemae.

 

I don't want to go too deep into this topic, since it would be disrespectful to the OP's original question...

 

But there are alternative financing options out there besides using a Credit Card or personal loan.

 

 


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NonSufficientFunds
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Registered: ‎04-09-2013
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Re: Buying a house with credit cards

[ Edited ]

Another source of funds available for the purpose of flipping property is called a "hard-money lender". 

 

Cash is made available very quickly, and the lenders don't take much interest in the personal credit worthiness of the borrower. 

 

The interest rates are higher than at a bank, but since the loan is usually paid back quickly (upon the sale of the renovated house), it is a very attractive option for those who want to get into the house-flipping business with very little cash.

 

However, the hard-money loans are only for flipping purposes - not for long-term occupancy by the borrower, as they typically require rapid repayment.

 

http://en.wikipedia.org/wiki/Hard_money_lender

 

 

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Gunnar419
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Registered: ‎01-23-2013
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Re: Buying a house with credit cards

Thank you all for the good, thoughtful discussion. I'm learning a lot.

 

I definitely don't want to do anything that's not ethical or anything that would bring AA on me from cccs. The balance transfer idea is interesting and I will look into DCU, though I'm supposed to be gardening now :smileyembarrassed: and would like to avoid any new CLs or LOCs. At the moment, I don't think I could show a financial institution enough income to justify new credit anyway.

 

The thing is about this house that when I say DIRT cheap I really mean it. Four digit price, and though it's definitely a handyman special it's in a nice area on a large lot. It's bank owned, so I don't have flexibility for making deals with the seller, but it's an amazing deal as is. Thanks again for all the suggestions.

 

 

 

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webhopper
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Re: Buying a house with credit cards


Gunnar419 wrote:

Thank you all for the good, thoughtful discussion. I'm learning a lot.

 

I definitely don't want to do anything that's not ethical or anything that would bring AA on me from cccs. The balance transfer idea is interesting and I will look into DCU, though I'm supposed to be gardening now :smileyembarrassed: and would like to avoid any new CLs or LOCs. At the moment, I don't think I could show a financial institution enough income to justify new credit anyway.

 

The thing is about this house that when I say DIRT cheap I really mean it. Four digit price, and though it's definitely a handyman special it's in a nice area on a large lot. It's bank owned, so I don't have flexibility for making deals with the seller, but it's an amazing deal as is. Thanks again for all the suggestions.

 

 

 


If you have a retirement account, 401k, or certain insurance policies that have face value, you can also look at taking a loan against one of them :smileyvery-happy:


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fltn
Posts: 279
Registered: ‎12-26-2012
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Re: Buying a house with credit cards

My husband and I are doing the same thing.

We used our LOC/Navchek and we also used our paypal smart connect accounts. Just sent each other payments and transfered to our accounts.

We know the interest is high but it is worth it to us.

We got a 2000 sqft poured block house 3b 2b for for $6000.

We took extra cash to fix the dry wall, windows, plumbing, and new doors, and locks.

The Hvac was gone so we just bought us some window units for now.

We made it livable so now we will either rent it out or move into it.

Either way we can pay back quick and will be so much cheaper that a mortage that ends up costing 3x's as much as the original price of the house.

 

Good luck to you!

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