DIYbanter - View Single Post - Short-term borrowing for down payment.

(Dipu) wrote in message . com...
HI

We have started the process of selling our current house and buying
another one. It is supposedly a sellers market in our area. We are
expecting to sell the house at some gain and use the gain as the
downpayment of the new house. Let us say we got a buyer and signed the
contract and they are beyond the contingency period. Lets say we have
1.5 more months to go before closing of escrow. Now if I want to buy
the new house and close on it before the older house escrow close, can
I borrow the down-payment against the money that I will receive from
the sale? Who would give such a short-term loan? My credit cards will
not cover the downpayment.

I know of other options to handle this situation like rent back etc. I
am interested on the borrowing of the down payment more as an
educational purpose.

Thanks.

Bankers generally want to know the source of the down payment. It
would be SOP for them to require you to document the source. In
particular, they get very nervous when the down payment is borrowed
money, and it may prevent you from getting a loan on livable terms.

You need a lender who understands your situation and has the ability
to deal with it constructively. Not all lenders do.

--
Chris Green