Business Credit Card to Fund Rehab - Owner Occupant

[Samantha Otero]

Hello Bigger Pockets Family, 

I recently purchased a SFH in Miami using conventional 20% down, however, since I am a first time home buyer, I am claiming this as an Owner Occupant. I plan on rehabbing the property and "house hacking" one side of the home. My question is: Can I use a business credit card to fund the rehab even though this is not considered an investment property? Will there be any legal trouble with taxes down the road if I do so? Thanks in advance.

[Albert Bui]

Quote from @Samantha Otero:

Hello Bigger Pockets Family, 

I recently purchased a SFH in Miami using conventional 20% down, however, since I am a first time home buyer, I am claiming this as an Owner Occupant. I plan on rehabbing the property and "house hacking" one side of the home. My question is: Can I use a business credit card to fund the rehab even though this is not considered an investment property? Will there be any legal trouble with taxes down the road if I do so? Thanks in advance.

Hi Samantha 

With regards to conventional or FHA financing, you won't be able to use "unsecured," funds to close with, during the middle of the escrow period. However if you were to draw the funds and season it for 60+ days then apply then you can use the funds to close with. So it depends on the timing and planning of your mortgage file.

@Matthew Kwan@Carlos Valencia