Posted by Scott S. on June 19, 2006 at 22:37:18:
I do have my own home but not enough equity since I only bought it about 7 months ago. When I was speaking of the line of credit I was thinking more on the lines of a business line of credit (unsecured) which from talking to some lenders I could get about 100K.
I see what you mean though about the interest. So technically I could use a business line of credit for the downpayment but would then be paying interest the whole time on what I borrowed from the line. Is this correct or are their legal issues with this?
I spoke with a mortgage broker that I’ve used in the past and I can get the purchase and rehab money for a house rolled together as a construction loan for 10% down. So if rehab and purchase costs were 300K could I use the business line of credit to put say half down then use my cash for the other half. Then use my remainding cash for some carrying costs and misc?
I just don’t want to use all my cash for a downpayment if I don’t need it cause I only have 25K and in Northern NJ that doesn’t go to far.