Posted by Russ Sims on December 10, 1998 at 21:31:36:
You can sure use credit line money for a down payment, but my advice would be to transfer the necessary $ into your checking account well in advance of applying for financing. Lenders really like it when they think you are using your own money for the down. If you tell them up front you plan on using credit line money, well, they can get an attitude. In general, the more they think that you are risking your own money, the better they like it. At least that’s been my experience.
Posted by John(NH) on December 11, 1998 at 13:03:59:
Russ and SCook are right on the money. Use the credit
for a downpayment, just have it in your account at
least three months prior. Otherwise they will charge
you a higher rate and loan on a lower LTV.
Posted by SCook85 on December 11, 1998 at 08:50:48:
Russ gives some good advice about putting the money into your account well before you intend to use it. Most conventional lenders will ask you (I’m not sure but I think it is a question on the 1003 loan application) if you have borrowed any portion of the downpayment. They don’t want you to borrow the money. You can take it from savings or have it gifted to you by a friend or family mamber. If you receive gift funds they require a letter from the grantor stating that it was a gift and does not have to be paid back.
You can use you line of credit but you have to do it right. I would suggest having it in your checking account for 3 months prior to using it. They will want to verify your bank statements.
