Is it possible to purchase a house under 10,000 dollars with a credit card?
Filed in Credit on Oct.31, 2009
Tags: Cash Loan, Credit Card
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November 3rd, 2009 at 3:21 am
Samantha
Yes it is, but no matter what it will all come down to the seller.
November 5th, 2009 at 4:28 am
Sheila
Why on earth would you want to…with a credit card usually your minimum payment is 20% and a large majority of that is interest…but with a mortgage you are making regular payments to principal with every payment you make and there is a light at the end of the tunnel.
November 7th, 2009 at 9:27 pm
Julia
Yes, you can. I have a credit card with a credit limit over 30k. My question is, what kind of house can you get for as low as 10k? I purchased a mobile home for 7k and I used my credit card to pay for it since time was a factor. I then sold some stock and got the funds to pay off the credit card when it was due, so they in essence, made me an interest free loan for a short period. The point is, using my credit card bought me time, as much as 50 days to get the funds to pay the balance in full to avoid a finance charge. And even if I did not pay the balance in full, my credit card interest rate is only 7.5%, which is less than I would have paid if I arranged a mortgage. But, I can not write off credit card interest as I can with mortgage interest on my taxes. The best bet is to get a mortgage, at as low a rate as you can, with no prepayment fee or penalty and then pay it off over time, so you can write off taxes on the mortgage interest if you itemize deductions. The mortgage payments enhance your credit rating. Using my credit card as I did, did nothing to enhance my credit but it made it possible to take advantage of a good deal without the time difficulties of the mortgage paperwork which would have taken too long to take advantage of the deal. It was a case of buy it now or risk someone else buying it out from under me and it simply was too good to take the risk. Still, I wonder what the quality is of a house for so low a price…
November 9th, 2009 at 1:28 am
Florence
Yes, you can. You will most likely need to get a check to use from you credit card company since it is doubtful that the seller is set up to accept a credit card payment.
HOWEVER, I caution you against doing this. A previous poster said that they got 7.5% on their card which was lower that a mortgage would have been… BUT that is not exactly true. While the actual percentage may have been lower, the way the interest is calculated on a credit card differs greatly from the way it is calculated on a standard mortgage.
A mortgage will cost you way less over the life of the loan. Also, as mentioned, you get the benefit of deducting the interest paid from your taxes.
Try checking out the mortgage lenders from this page:
Good luck
November 12th, 2009 at 1:06 pm
Pedro
I’d like to add that a mortgage loan may cost more then using the credit card check plus unless you go to a bank or CU not many Mortgage loan officers would take a loan for only 10,000 the closing cost would be way too high & not worth the time.