Credit Card Purchase
BP,
I’m looking to purchase a property when the current renters move out in June. I can make the purchase with my business partner’s credit card (12%), the property will be in my name (he doesn’t want to do buy and hold), and our contract will state that I am responsible for all repayment of financing until the refi.
1.At 12% putting it on a credit card seems like a no-brainer since HML rates start at 12% + 2 points. I can afford the monthly minimum payments until refi even if it doesn't rent. Is it wise to put the entire purchase and renovation on a CC, even for 6-9 months?
2.Lenders have quoted refi minimums as follows: 75% LTV, $50K minimum loan amount (property has to be worth $67K min), credit score > 670, minimum 6-month payment history. I can meet all requirements. Is there something I'm missing here? Who has experience refinancing an investment with a standard loan?
Thanks,
Andy