You Don’t Use an Acceptable Source for Your Down Payment
Borrowing down payment money is traditionally frowned upon, as are any other methods that don’t season the money for at least 60 days, according to Elysia Stobbe, a mortgage expert and author of “How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye.”
“It’s not acceptable if your down payment or cash for the closing was under your mattress and not in the bank for 60 days,” Stobbe said. Gifts are an acceptable source, so some people are turning to crowdsourcing options like GoFundMe accounts to help finance their home purchases.
Unfortunately, this won’t work according to Stobbe: “It isn’t a gift, so you can’t use this money to buy real estate. Money which is gifted has to be from a relative or close family member.”
Also, credit cards aren’t the best choice for home down payments, either — with interest rates higher than most of the worst mortgage rates, it’s best to keep the plastic in your wallet.
