I need $3200 to close on home that my wife and I like. The home is a personal residence not for investing. To close we need $8550 and we have $5500. We're using FHA loan with 3.5% down. Any ideas of finding the money? Should I go to a local bank? Close friends & family are not an option for us at this point and we rather not ask. We own a duplex that has no mortgage.
Sounds like there isn't really a way for someone to make their money back, since there isn't an investment opportunity for anyone giving you the money.
If you go to a local bank or other loan agency to get a $3,000 loan for your down payment, it'll likely come out at closing credit check and you may invalidate the qualifying terms of your mortgage. Bank's typically do not like borrowing your down payment to make a bigger loan, you are leveraging borrowed money to increase your credit capacity.
If I were you, I would look at waiting a bit and saving the remaining funds and make a legititmate down payment. Maybe you can negotiate your contract to have a further back closing date that would allow you to save the funds between now and then.
If not, you start to get into a squirrely territory in the payday loans, vehicle liens, get-cash-fash schemes which carry high interest rates, can be dangerous, and also invalidate the terms of your mortgage if the bank finds out. You'd be better off signing up for the underground promo "$500 to anyone who stays 1 minute in the wresting ring with the He-man-gulator."
@Christopher Morin thanks for your input. We will talk to our lender to see what other options we have. Most likely we'll just push back the closing date.
Depending on the shape of the duplex you could probably find an investor that would loan you the money as a 1st position mortgage on the duplex. Make sure you can pay them back so you don't lose your other property. I would expect a pretty high interest rate as well. Not payday loan level but it would have to be worthwhile for the investor.
@Ryan Dossey Thank for the idea. I think we'll wait to save seeing how we don't have any mortgages yet.
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