Need a personal loan for down payment on home

[Anonymous]

So I have just got my pre approval for a home however I need to come up with the down payment. My mortage score came in at 625. 

Where could I look to get a loan for the deposit?  Me and my wife have just moved to CA from TX so a lot of our funds went on the move. 

[Pikaboo-icu]

Welcome to My Fico..

It's been a while since I obtained my last mortgage but if I recall correctly they ask you; if any of your down payment is borrowed.

You should inquire with your loan officer or broker because borrowing the down could cause a problem. 

Do you have family/friends etc... where you could obtain the down payment? 

[Anonymous]

OP, I don't believe this is going to work for you.  It's never advised to apply for any credit at all in the months leading up to a mortgage.  Not only would doing so likely drop your credit scores (which are already borderline) but the first thing your mortgage lender is going to ask when they see that it's a personal loan is what it's for.  A down payment for the mortgage that you're about to apply for would not be an acceptable response.

[iced]

I agree this isn't a wise thing to do and I would be suspect of any bank willing to accomodate this request. This sort of thing was more accepted 12 years ago during the sub-prime bubble, but the days of 0 down and 80% mortgage + 20% loan for home purchases are (hopefully) behind us.

You probably don't want to hear it, but I'd suggest finding a place for rent for much less than you can afford for a few years to save up some money for a down payment. Might be smaller and older and not to your liking, but it'll get you closer to owning a home much faster.

[Anonymous]

Can't link to the websites, but if you google "buying a home with no Money down". It should help you in finding something, if you really want to pursue this. You'd be lookig at either an FHA, VA, or USDA Loan. And you'd obviously need PMI. NFCU offers this also, but you'dneed to be a member. 

But you should at least come up with 3-5% of your own Money, if 20% isn't doable. To show them that you're serious, and not a big risk.

[RobertEG]

It will increase your debt to income.

What is your current debt to income ratio, and what are the underwriting criteria?

[UncleB]

Moved thread to 'Mortgages' for additional input on using a personal loan for mortgage down payment...

--UB

[hollyanimal]

It doesn’t sound like your ready to buy a house. Save up a down payment and reserves. Home ownership can be expensive and you need money in reserve to fix things, etc. This is why so many people get into financial trouble as homeowners and end up in foreclosure, etc. Good luck to you.

[homeloanexpert]

On the loan application under the Declaration Section VIII it specficially asks, "Is any part of your down payment borrowed". That's going to cause a problem. If you lack the down payment, you have other options. Depending on what state you live in, there are DPA's (down payment assistant programs) avaialble as long as you have at least a 620 middle credit score. In addition, another option is the USDA RDL that doesn't require any down payment. I strongly recomend you don't go into debt in order to secure your down payment.  You might want to speak to another Loan Officer, maybe someone who can offer you more loan products.

Best wishes to you

[CreditInspired]

Hi OP
As another MyFICOer said, it may not be a good time right now to buy a home. You asked about money for a down payment but you need much more. Below is a list:

Monies outside of closing funds:
*EOM - Earnest Money Deposit to be submitted with your real estate contract — minimum usually $1K
*Home Inspection can be between $200-400
*Appraisal can be between $325-550
*Credit check $12-18
*Flood fee $10-20

Then closing Fees at settlement:
*City, county state recordation fee
*Points, loan origination fees if applicable - each 1% of loan
*Hazard insurance - 1 year paid in advance
*Settlement attorney fees
*Lender title policy
*Misc fees, ie, courier, loan pkg prep, etc.
It can cost somewhere in the neighborhood of $6-12K for closing depending on loan and price of home.

And as someone else mentioned, you must have money in reserves for what can go wrong will go wrong once you’re a homeowner.