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Do any banks accept CD's as a form of collateral for a down payment?

I want to purchase a property for 650k, and have 175k in CD's, but I am not looking to cash them out, just use them for collateral. Anyone offering a program like this? by bethenny.lock_11659 from Rockaway Park, New York. Oct 23rd 2015 Reply


Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

Not likely.

Oct 23rd 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,045 contributions

Conforming guidelines do not allow for this.. you would need to bring cash to the table to satisfy the lenders down payment requirements.. There might be some hard money lenders or portfolio lenders who might allow for this, but in all reality, the terms would be ugly.. higher interest rates and higher fees.. you would be better off cashing out the CD's, or see if your bank does a collateralized loan. If the do, then you can get a personal loan guaranteed by your CD's and then use the loan proceeds for your down payment.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 23rd 2015
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Larry Gray (lgray_312_247)
#563 ranked lender in California - 1,127 contributions

Some lenders allow for the money in CDs to be used in qualifying income based on a calculation they make. For it to count instead of putting money down I know of one lender that allows for that on jumbo and super jumbo loans. You would still need to put down at least 10% and the collateral could be used towards an additional 10%. Contact an experienced mortgage broker in New York or 3 if need be...one of them has to have at least one lender that allows for that. If they do not immediately know of one, have them email me and I will provide a wholesale lender for them.

Oct 23rd 2015
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 591 contributions

No, conforming lenders will not allow this, you may need to go to a hard money lender.

Oct 23rd 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,109 contributions

The answer is no. Now if it was in the stock market, then yes there are lenders who will do this.

Oct 25th 2015
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