Thanks for the credit card help, guys! - Posted by Richard(WA)

Posted by Richard(WA) on February 16, 2001 at 14:09:56:

No, that’s not the down payment. That $3,000 (plus the $500 cash I have that I will use to keep my cards below the credit limits) is the entire purchase price. No conventional loan to worry about, no hard money loans, no hassle, no muss, no fuss. :slight_smile: I just take a cash advance on my credit cards and to the realtor and seller its an all-cash deal.

Umm…I am not an expert on conventional loans, but I would not try to use credit cards for a down payment with a conventional loan if I were you. Last time I applied for a conventional loan, they told me I’d have to sign a document stating “none of this down payment was borrowed” under penalty of perjury and they’ll also require documented proof of funds and where you got the downpayment. They will want to know where the down payment came from and you’ll have to prove you didn’t borrow it. At least, that’s how it worked at the three banks I applied for loans at.

Thanks for the credit card help, guys! - Posted by Richard(WA)

Posted by Richard(WA) on February 14, 2001 at 20:49:25:

Wow…what a lot of responses my one question got!! You guys are GREAT!!! Thank you!!!

I had already checked into the legalities of building on the land, if it was buildable, perk tests, all of that. The land is in a recreational subdivision so keeping motorhomes and trailers on it is no problem at all. There’s quite a few motorhomes and trailers on the neighboring lots–some have sat there for so long moss has grown on the roofs (yep, moss likes to do that here in the Pacific Northwest).

The covenents and restrictions do permit permanent residences to be built on the lot–many of the nearby lots already have houses in place. I would still need to do the perk test to see if a septic system can be put in–but if it doesn’t pass the perk test, I’m told there are some quite viable alternatives to a conventional septic system. My main worry at this point is seeing if the property meets setback requirements. I’m still investigating this but so far it looks good.

I did run into one little obstacle though…I read the fine print on my credit cards, and it turns out there’s a $100 a day cash advance limit per card. So going to a bank teller won’t work. So it looks like I’ll just have to do it the hard way and withdraw $100 per day per card until I’ve got the $3,000 in loans I’ll need. sigh Wish I could just charge the land purchase the way I’d charge a department store purchase…

Still…I’d DO this in a second to get that land… I’d be high as a kite…:slight_smile: Especially as I’ve talked to a LOT of so-called experts–lenders, realtors, and the like–who told me I couldn’t get that land…:slight_smile:

Looks like I’m about to be a landowner for the first time ever…Yayyyyy! :slight_smile:

Next step after that…flipping my first investment property. :slight_smile:

thanks all!

p.s. IS there a way to get around that $100 daily restriction per card, legally and ethically?? Just charge it instead of using a cash advance??

Re: Thanks for the credit card help, guys! - Posted by Thom

Posted by Thom on February 15, 2001 at 20:10:15:

Hey…I didn’t catch your original post, but I’m just trying to get one thing straight. Are you using the 3 grand as a down payment on a loan? Would they allow you to use this method on a conventional loan? I’m curious to try it myself.

Re: Thanks for the credit card help, guys! - Posted by TD

Posted by TD on February 15, 2001 at 17:49:23:

If your card has “convenience” checks, use them to write yourself the amount you need, and cash them at your bank.

Also, you might want to try getting the $3000 cash advance from your bank first - despite what the fine print says. Normally, cash advances limits are declared with the regular limits - not in the fine print.

What does this mean for you? It means that it might be an arbitrary rule that may be imposed or enforced by your issuer at their whim. If you can’t get the money you need from the bank teller, call your issuer, tell them you require them to “open up” the card for you, and that you’re consider another card if this isn’t done for you pronto.

Since the interest rate on the cash advance often is more than the regular purchase rate, they should be more than willing to accomodate you - but don’t be affaid to shop around for someone who will give you the best deal.

find someone… - Posted by Anne-ND

Posted by Anne-ND on February 15, 2001 at 11:45:13:

…who wants to buy something that costs $3000. You
buy it on your card, they give you the cash. In fact, with quite a few cards, the interest rate on cash advances is higher than on purchases, so you might save some money that way. Also, some start to charge from day one on cash advances, but give you 25 days on purchases.

Good luck,