Use a car loan for down payment
I have the opportunity to acquire a vehicle at an incredible discount. The purchase price would be 2750 and the retail value would be 8300. A local bank has run the numbers and I can put a car loan on the vehicle for up to 125% LTV for a loan of 10,375. Subtracting out the 2750, that leaves me about 7600 I can cash out of this loan.
My question is this - would I be able to use that as contribution on a down payment on a property? I'm not sure if this is even legal, using a loan as down payment, but I thought it would be a great opportunity if it is. Essentially I would buy a car that lets me buy a house that pays the house and car off!
Anybody have any insight into this?