Credit Cards Center Credit cards from our partners
Reply
New Visitor
Posts: 1
Registered: ‎07-31-2008
0

First time home buyer? Can you use a credit card to pay closing costs?

 
Frequent Contributor
Posts: 290
Registered: ‎07-04-2007
0

Re: First time home buyer? Can you use a credit card to pay closing costs?



johninark wrote:



I dont think so, I believe you have to show earnest money..
4/15/2008 EQ 539 TU 489 EX 575, 7/25/2008 EQ 669 TU 555 EX 611, 7/31/2008 EQ 669 TU 555 EX 624, 8/5/2008 EQ 669 TU 586 EX 624
Super Contributor
Posts: 6,875
Registered: ‎07-03-2007
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

Cannot be borrowed.
 
* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

Regular Contributor
Posts: 138
Registered: ‎06-03-2008
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

Except for 401K, right?
Super Contributor
Posts: 6,875
Registered: ‎07-03-2007
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

you are borrowing from yourself.... which isn't borrowing.
 
* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

Senior Contributor
Posts: 3,240
Registered: ‎04-03-2008
0

Re: First time home buyer? Can you use a credit card to pay closing costs?



DallasLoanGuy wrote:
you are borrowing from yourself.... which isn't borrowing.





Similarly, one can take out a policy loan against the cash value of other investments such as the cash value of a life insurance policy, and again that isn't debt. When I took out a loan on my life insurance policy for part of the down payment, the underwriter did ask for a letter from New York Life documenting the source of the money that suddenly appeared in my bank account.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Super Contributor
Posts: 6,875
Registered: ‎07-03-2007
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

Good point, Matt
* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

New Member
Posts: 4
Registered: ‎07-29-2008
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

Many loan programs vary with underwriting so you should speak with your lender about such requirements but typically down payment and closing costs cannot be borrowed. Many programs allow gifts from families or not-for-profit organizations, and even federal and state grant programs that can provide down payment and closing cost assistance. Programs may also allow the seller to pay the closing costs so you can negotiate the costs into the sales contract. Typically, secondary market guidelines limit seller concessions to no more than 3% of the purchase price of the home. If the closing costs are required to be paid by the borrower then the underwriter would require verification typically through deposit statements reflecting that you have adequate funds to close. You may still be able to borrow money if you are avoiding wiping out the checking account which the lender may be okay with if they have verified that you have enough on deposit but make sure that you notify them of the borrowed funds so that they can incorporate the new debt into your debt-to-income ratio. Good luck with your home purchase!
Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
0

Re: First time home buyer? Can you use a credit card to pay closing costs?



DallasLoanGuy wrote:
Cannot be borrowed.
 





Okay, here's a dumb question (and, NO, I am not seeking to "buck the system!!" ): what's to keep someone from cash advancing the money from a CC to pay for closing?

I mean, how would they KNOW where the money came from??

For that matter, why can't you borrow the money for closing? I thought that some loans roll the closing costs into the loan itself ... wouldn't that be borrowing for the closing?

Again, not trying to find a way to get past the system or cheat in ANY way, just curious!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

New Member
Posts: 4
Registered: ‎07-29-2008
0

Re: First time home buyer? Can you use a credit card to pay closing costs?

 
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.