Down Payment Sources

[Patrick Lorang]

Can anyone suggest creative ways to come up with down payment money, required for a hard money deal?

Specifically, I need to quickly come up with $9,000 for a down payment, in order to fund a purchase through the hard money lender I'd like to work with. Aside from a motor home I'm trying to sell (which will only yield about half the needed funds, at best), all I can see as another option is to obtain a line of credit. Borrowed funds may be acceptable to the HM lender; that's not totally clear, at this point.

I have good credit (FICO in the mid-700 range). Is there a lender who'd issue a signature-loan type LOC, based just on my credit worthiness? Who would I approach for this LOC? (I haven't enough equity in my current home to do a HELOC.) Years ago, I obtained a LOC (for I think $10K) out of the blue, with I bank I had no previous relationship with, or any collateral on the table. Are there lenders still out there like this?

Any direction regarding creatively coming-up with down payment funds, in short order, would be appreciated!

[Jerry W.]

@Patrick Lorang, it sounds like you do not have any other property to take a second mortgage on.  There are some credit cards you can write a check on and make payments back to over time but the interest rates are steep.  One more thing you might consider.  If you are $9,000 short or even half of that short, this means you are working with no reserves.  That is pretty risky.  If the flip takes even one or 2 months longer than anticipated or you have any cost over runs you could find yourself in deep trouble.  With the interest rates hard money lenders charge you might be cutting it too close.  Consider the possibility of sitting out on your plan until you have $5K or $10K more in your bank account.  Just a thought, good luck on whatever you decide to do.