Forgotten Your Password?

Need to Register?

Question Icon

Using loan toward downpayment?

is it possible to supplement my downpayment with a loan? I know that's kind of loan on top of loan, but I'm on a weird time schedule because I need to purchase a home NOW (remarried and kids from another marriage moving into our home), but I project that I'll be settling a deal to sell my company within two years and that will generate enough to pay everything off. by upslongstead77.je... from Algonquin, Illinois. Sep 12th 2013 Reply


Hi how are you?Fha does not alow down payments to be funded with a loan. So you cannot take out a loan to bring as a down payment they will however allow gift funds so you can obtain a gift from a relative, close friend, or employer. Hope this helps :)We can provide a mortgage with low rates that way you will have more money later for other things Please let me know if you have any other questions.714-325-0855Cynara Www.promptlending.com

Sep 12th 2013
1
0
Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Do what you have to do, to get 3.5% down payment, and don't worry about the mortgage insurance or the interest rate. If you opt for a higher rate, your closing cost for the loan origination fee should be lower. Or, find a home that is offered as a "rent-to-own", and get a contract for at least 3 years.

Sep 12th 2013
1
0

Thanks for the question. You can as long as you disclose the loan (if not reflected on your credit) and are able to qualify with that payment. If you have any further questions please feel free to contact me directly. Thanks. -Sam

Sep 12th 2013
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

The rules are different depending on the loan product you go with.. keep in mind that conventional financing allows for 3% down payment, and FHA requires 3.5%. Both will have mortgage insurance, however conventional will be the better way to go since the MI is less and you don't have to pay an upfront fee like you would with FHA.. some programs say borrowing for the down payment is acceptable so long as you can qualify for the loan with both payments disclosed, other loan products don't allow you to borrow at all.. however in either scenario, if you have asset such as a car that's paid for, and you take out a loan against that and use the funds as down payment, then that would be acceptable for all loan products.. if you want to know for sure, you should contact a local mortgage broker and let him review your complete profile.. .. 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. 480-287-5714 WilliamAcres.com

Sep 12th 2013
1
0

Hi, No problem. You would just have to qualify for both loans of course.Feel free to call or email anytime and I can get you prequalified for your purchase right away. Kris KrajeckiGreat MortgageHuntley, IL630-347-6321

Sep 12th 2013
0
0
Jamie Chenoweth (jchenoweth)
#22 ranked lender in Illinois - 7 contributions

Yes you can as long as you secure that loan with an asset. We then have to use that new loan in your debts and part of your debt to income ratio. For example, you can take out a loan on your auto that is paid off and we can use that money for your down payment as long as the new loan payments fit into your debt to income ratio guidelines. You can NOT take an unsecured loan out and use that. Hope this helps. If you need further help, please don't hesitate to email me - jchenoweth@bncbank.com

Sep 12th 2013
0
0
Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 531 contributions

You would want to talk directly to a Loan Officer that also has access to all of your Income and Asset information. A loan using the home you are buying as security is very likely not possible. Remember, any loans you have will require you to qualify including the monthly payment.

Sep 12th 2013
0
0
Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

Yes you can. The loan must be secured and the payment associated with that loan must be included in your debt ratios to qualify for the loan.

Sep 13th 2013
0
0
Subscribe to our news feed.