Can I use a personal loan towards a down payment on a house?

2 Replies

I was recently pre-approved for a 60K conventional loan (investment property, 4.3% interest) . I need to put 15% down (9k), closing costs are waived if I buy in a LMIT area. I wanted extra cash on hand for repairs/Capital Expenditures. So I recently  took out a personal loan in the amount of 10K from a credit union. 

I have no debt in my name, other than a leased vehicle. My salary from my job is roughly 55K (Ohio). Will my bank deny my purchase due to using personal loan money for the DP and the buffer amount. 

Thank you for your time, 

-Dave G.

@David Guglielmo Largely depends on the bank. They'd likely want to ensure that the $10k monthly payback payment wouldn't throw off your debt to income ratio. If they see it as an issue, I'd shop around with different banks. Start small and local with the banks that have few branches (like under 10 branches).

Originally posted by @David Sanford :

@David Guglielmo Largely depends on the bank. They'd likely want to ensure that the $10k monthly payback payment wouldn't throw off your debt to income ratio. If they see it as an issue, I'd shop around with different banks. Start small and local with the banks that have few branches (like under 10 branches).

 Thank you David!