Using Business Credit to Acquire Real Estate?

6 Replies

Has anyone ever used 0% interest business credit cards or lines to make down payments on properties and later refinanced the house/property to pay off the cards or just let the tenants pay them off? 

If anyone has done something like this or a variation of it, could you break it down here? 

Thanks in advance, 


I have used a signature line of credit from keybank to purchase and flip property.  My wife and I have very good credit and assets, so I am sure that helped on our application.  I also had a few years of paying on a Line of Equity (LOE - 100K) on my primary residence prior to applying for the signature line (30K).

Banks will Normally go up to about 85% Loan to value LTV for the 1st mortgage and LOE combine. Signature line just depends on your income and credit history. Having a banking relationship always helps.

I used mine just for cash purchase, then paid them off in full when the project was complete.

hey! Thanks for the reply. Was the signature line of credit a BUSINESS line of credit or personal? And does the signature line of credit from key bank show up on your personal credit report? 

What do you think about using the business card or line for down payments on buy and hold homes? 



I have a personal line of credit but my mentor has advised me not to use my personal lines for downpayments and instead to get business lines of credit. 

He says using my personal lines will increase my DTI and affect my ability to get qualified for a mortgage, whereas by using business lines it won't affect my personal ability to get qualified for loans. What say you all?

I just got a business line of credit for 15k and business credit 10k WITH a personal guarantee from navy federal. All they did was run my transunion....thats it!!! I didnt have to show income docs or w2s as long as it wasnt more than $25,000. 

i dont know if any other banks do this but i think its great. im trying to figure out if i want to use this for my down payment as well

You have to verify with your bank that the business line of credit won't show up on personal credit also since they are almost always personally guaranteed.  The same goes with business credit cards.  There are a number of lenders that will look only at your credit score and cash flow of the property to fiance them as long as they make sense to the lender.  

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