Using a line of credit for a down payment

[Franklin Marte]

I’m close to reaching 10k saved up I was thinking of paying off some debt and get my credit to at least 750 its at 720 now. After my credit goes up I wanted to apply for a line of credit and use it towards a down payment can I do this?

[Chris DeMello]

unsecured debt refers to any type of debt  that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower. 

You could use a PLOC for a down payment, but If you go to a lender to get pre-qualified, and they ask where you're getting your down payment from and you say i'm taking it from my LOC, pretty sure thats not gonna fly. Gotta get creative and move the money around. I'd take the money out of the line and stick in savings a month or so before going to get qualified. That line will show as debt now, but you'll have the cash for a down. Or since you're already close to having enough down for an FHA loan maybe see to get qualified with your currant debt. FYI.. for every $400 worth of debt payments you have, you lose $100k in buying power.