1,507,073
Ok, so this is more of a down payment via credit card, get a loan for the rest. It looks like a nice gimmick and an interesting take on the process. I don't see it doing too well though. How many people would buy a house site unseen?
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Morris Real Estate Mar...
Toronto, ON
-
Carla Muss-Jacobs, RET...
Portland, OR
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
891,971
I like Conrad Allen's answer! Yeah, who is going to pay the cc fees? have a great day, Lina !
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
1,683,912
I doubt it, because there are many that have learned their lesson about credit cards. Like me, I will not have one.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
1,466,257
Lina Poka, MBA It appears the credit card only covers the deposit. The buyers are purchasing a condo site unseen and on an impulse. I see issues with these impulse buyers who may not even qualify for the purchase. Some day real estate companies may take credit cards for the EMD, but not this way.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
1,242,204
Whenever IRS and banks will take a credit card for paying tax and mortgage that is when you can use it for real money......
Nice try but no cigar......
-
Jessica Friedland
Spokane, WA
-
Les & Sarah Oswald
Eastvale, CA
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
634,532
As Michael Setunsky and Annette Lawrence , Palm Harbor, FL 727-420-4041 point out this is for the deposit not the purchase. I don't think we will have buyers financing the full down payment on credit cards. That's even more risky than the worst loan practices before the Great Recession.
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Morris Real Estate Mar...
Toronto, ON
-
Michael Setunsky
Woodbridge, VA
-
Anna Hatridge
Farmington, MO
-
Roy Kelley
Gaithersburg, MD
1,728,867
GOD, I hope not. This really will screw things up!
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
-
Roy Kelley
Gaithersburg, MD
766,969
I see the use of the term credit card vs. mortgage to be simply symantics. The loan seems to be the same to me.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
921,504
It already is a norm. As the article indicates the credit card only secures the deposit, for pre-construction. The buyer still needs to apply and secure a mortgage.
"Once the transaction goes through, the property is yours — as long as you can secure a mortgage and pay the rest of the home's price tag, which will be required down the road as the project gets built. "
Hmmm. is it yours or not yours?
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Roy Kelley
Gaithersburg, MD
-
Sandy Padula & Norm Pa...
, CA
5,117,178
I see many issues coming down the road with this. My instinct is that if this were truely a viable option it would have been around long ago. Credit cards are not new, after all.
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Morris Real Estate Mar...
Toronto, ON
-
Michael Setunsky
Woodbridge, VA
-
Anna Hatridge
Farmington, MO
1,578,243
I can't imagine very many people will have the credit line or interest in doing so.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
1,712,876
Just another gimmick.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
3,988,013
I don't think so either. Most people don't have a limit high enough to buy a home that they would want to live in.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Nina Hollander, Broker
Charlotte, NC
3,986,308
Another dangerous option for sure.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
-
Roy Kelley
Gaithersburg, MD
392,768
I think some buyers will find that having excellent credit gives them an edge when buying investment properties.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
4,434,177
I do not think it will happen soon because of stricter guidelines for lenders.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
2,380,462
I wonder if you get points on your credit card too
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
1,625,353
I had only one transaction where the credit card was required by the online auction to place a bid on the property.
Making it ''a norm'' does not sound like a good idea to me. I see too many defaults on credit cards, so I would not recommend to use this way to pay an EMD for a home, unless your money are coming very soon and this is a temporary solution.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
441,043
thats going to big a big bill with a mongo interest rate. I hope it will only be short term... I don't think this will become the norm, enlist in the service and get a nice VA loan...
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
183,407
If any of your are familiar with the "O Street Mansion" in Washington DC .. the lady put the down payment on her credit card .. because she had no money, but had a "vision" of what it could be... back in 1980 I think? Talk about a leap of faith. Man! imagine how may frequent flyer miles you'd be banking!!
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
6,426,149
I have heard of using a credit card for downpayments. But I could not imagine people having enough available credit on a credit card to buy a house.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
13,383
Hopefully not. Not sure if that would be a sound financial decision.
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Morris Real Estate Mar...
Toronto, ON
-
Anna Hatridge
Farmington, MO
8,164
Wow! Things really are changing in the Real Estate industry! I just don't see this becoming the norm. It would have to be an impulse buy most likely, and I don't have many buyers who buy sight unseen even with an agent doing a walkthrough and video for them.
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Morris Real Estate Mar...
Toronto, ON
282,018
The new norm......... that would make me sad, I just started thinking people were trying hard not to be dumb asses again.
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Morris Real Estate Mar...
Toronto, ON
864,708
I actually have heard a few successful investors who started that way. Keep in mind that most of their investments are short term.
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Morris Real Estate Mar...
Toronto, ON
323,664
Lina, millions of people love the plastic, and it appears there is a push in our land to move away from cash. The banks and the government each want more control over our use of money, so I suspect we are on a train where we are not the engineer. That train whistle is a blowin...
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Morris Real Estate Mar...
Toronto, ON
4,800,132
I don't think that very many people will buy sight unseen without some advice as to what they may or may not be getting into.
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Morris Real Estate Mar...
Toronto, ON
1,562,386
Caveat Emptor!! Buying a home online is bad enough, but using a credit card, processed through an unknown site . . . OMIGOSH nothing could ever go wrong with that {rolling eyes}.
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Morris Real Estate Mar...
Toronto, ON
432,183
In the days of no doc loans, I remember people doing this. If you obtained a certain percentage of the down payment, you could pretty much get a mortgage on your signature.
I did purchase a car with a credit card. It was an awesome two years with zero intersest. I couldn't pass that up. The dealership wasn't thrilled and neither was my husband at the time! LOL
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Morris Real Estate Mar...
Toronto, ON
61,716
AMEX will do it if you have the juice.
Make it a Great Day.
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Morris Real Estate Mar...
Toronto, ON
4,319,873
Lina Poka, MBA I am not sure if this will work! Little apprehensive.
Any credit card transaction has additional cost which someone has to pay.
Though with the speed at which the world is changing, anything is possible!
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Morris Real Estate Mar...
Toronto, ON
108,016
Borrowed funds must be secured against an asset in order to be used as a down payment for a mortgage. Unsecured debt (credit card) is considered unacceptable. An unscrupulous mortgage advisor would have to have the prospective borrower take an advance and season the money in a bank account for 60 days--not a good practice.
The credit card concept, as represented, will not work for a home loan...
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Morris Real Estate Mar...
Toronto, ON
1,513,143
At the interests charges I don't think it will last.
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Morris Real Estate Mar...
Toronto, ON
4,272,984
4,584,596
That would be a hefty purchase in California. Can you provide another piece of identification before we proceed?
41,630
Thank you everyone for participating and answering the question. There was some very insightful answers.