True or false: if a credit card has an interest rate of 0% and is deferred for 12 months, you can use the proceeds for a down payment on a house.
The correct answer is false. Personal unsecured loans are not an acceptable source of funds for the down payment, closing cost or financial reserves.
You cannot use personal unsecured loans including signature loans, credit cards and overdraft protection on checking accounts. I strongly recommend if you’re buying a home, do not take out any new debt for any reason because it could disqualify you from buying a home, in other words, no new home for you.
If you need to borrow a new debt, please make sure you notify your lender before you take out the debt or a new additional debt can decrease your purchasing power.
If you want to know more about this or other important mortgage information, I am here for you.