Yes, as far as personal loan lenders are concerned, you can use the loan proceeds for any purpose, including a down payment on a home. The obstacle will be the mortgage lender, who won鈥檛 allow the use of unsecured funds for a down payment. However, there is something of a workaround.
People also ask
Are personal loans good for a down payment on a house?
Personal loans are not a good option for a down payment on a home, but there are plenty of other attractive alternatives. Between grants, gifts from family, low-down-payment loans and good, old-fashioned savings, there are plenty of ways to get money for a down payment 鈥?regardless of which type of mortgage you pursue.
How to get funding for a down payment on a house?
Borrowing some cash might just be the best way to get funding for your down payment. Buying a house is an important thing after all, and when you think of the importance of the down payment, you can鈥檛 overlook it. You can either borrow from your family, from your retirement funds or get a personal loan in rare cases.
Can I get a mortgage with a 3% down payment?
It allows borrowers to take out a mortgage with a 0% down payment. The loan鈥檚 upfront funding fee can add up to 3.6% to the cost of the principal balance of the mortgage, but the funding fee and other closing costs can be added to the mortgage. You may be able to find a conventional mortgage with as little as a 3% down payment.
How much down payment do you need for an FHA loan?
FHA loans only require 3.5% down, if you have a credit score of at least 580. Although, if you put down less than 10%, you鈥檒l have to pay mortgage insurance premiums 鈥?a fee that protects the lender if you default 鈥?for the life of your loan.