I'm looking to get funding of $25,000 to cover the down payment for a new investment property that was brought to my attention last week. I decided to create a profile on Lending Tree and received several quotes. The best quote was 3 year term at 5.94%. To me, it seems to good to be true so I wanted to see if anyone had experience using this method of financing.
The cash flow from the property will more than cover this loan.
Also, I'm looking to move from my primary residence over the next year. Would this personal loan negatively effect my move?
Any insight would be much appreciated.
It'll impact your DTI, but by how much or if it'll matter who knows. Also, you might run into issues about using a loan for a down payment on investment but others can speak to that (if you did a HELOC it wouldn't matter). I think I saw somewhere on here, that the loan has to be secured by an asset to work, but don't quote me on that.
I would be curious to know how this works out. I am in the same boat of wanting to get started and looking for ways to get down payment money. A small loan like this would not hurt my DTI much so as long as the property makes positive cash flow.
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