I got a question, I have a Beneficial Line of Credit with a limit of $6,500 Balance $500.00 I currently own a home but I'm buying a new one and keeping the old one till i get the new house, I'm working with a Mortgage Company to do a 100% LTV my question is I'm gonna pay my Closing Cost with a Check from my Beneficial Credit line, is this possible?? I'f i where to cash one of the checks myself it would take 2 weeks on hold and it would probubly show the new balance on my Credit reports and i'll get declined, Is it possible to pay at Closing with a Beneficial Finance Check??? from my Credit Line. HELPPPPPPPPPPPPP
If you have a Beneficial office in your area, call them and ask if they will write you a check from their acct. If they can, then you can have them do that and then cash it at their bank.
exotic When you receive a conventional/conforming loan, the lender will normally require that any assets to be used at closing be seasoned for at least 60 days. The exception to this is gift funds. Borrowing (and that is what you are looking at doing) to cover closing costs without letting the lender know is considered fraud. DO NOT DO IT!!!!!!!!!!!! fla-tan
It's a "No Doc" No income, No Assets, Non Conforming Mortgage! I'ts totaly legal to use Credit Line to Purchase Property??
If it is non-conforming then as long as you notify the lender that you are using your credit line for closing costs, then yes you can do it. If you don't, then you, are materially changing your financial picture and that is still fraud. It doesn't matter whether it is conforming or not. IF you qualify for a mortgage under a specific circumstance and then change that circumstance without notifying the lender, you are committing fraud. I know that there are people that would say go ahead and do it, they will never know, but FRAUD IS FRAUD period. fla-tan
I can take $ 5,000 out this month from my credit line and put it in the bank, then apply for the mortgage in two months, it's will show my balance of $ 5,000 but the mortgage i'm applying for they do not calculate "Ratios" and my credit scores are pretty good. Any Advise???????
exotic Under those circumstances, go ahead and take the money out and apply for the mortgage. If ratios have no bearing then you shouldn't need to wait. Just make sure that there is nothing hidden when you do. fla-tan
Hey fla-tan you are Great Help! Actually there is nothing hidden, just high credit card balance, which I can't hide LOL, wish I could. But my scores are in the mids 650 you think by taking this $ 5,000 out will lower my score alot? or just a little bit? by the time I apply i'll have my overall balance on other account lower. i'll wait till next year to apply, like that I can lower my balance more so my credit score will be much higher. Any Advise? See, I'll be paying off my Credit Line after I buy my new home, because i'll be selling my current one! I'll also be paying all my credit cards also. I'm short on money for closing cost.
exotic what you may want to look into is a bridge loan. That will allow you to pull money from your old house and use it towards your new home. fla-tan
I'm cheating on the closing cost, I got the seller to pay 3 points at closing. Not a bad deal with getting 3 points as a first time home buyer too. TedTX
Ted That is not an uncommon event. Many times, especially if structured correctly, you can get the seller to pay part or even all of the closing costs. fla-tan
Does anyone know of a lender who will allow your own funds to simply be posted on the bank statement for two billing cycles? Conceivably, two billing cycles could be as short as 31 or 32 days. In order to prove that the funds have been there 60 days, you would need three billing statements, right? One lender (Amsouth Bank, with whom I have not formally applied yet) told me that I needed two billing statements showing my contribution - but they didn't specifically mention 60 days - or maybe they did and I totally misunderstood...
