Take out personal loan for deposit and closing?

[Michael Garson]

The question is, if I take a personal loan from my credit union for $20K, 7 years at 11%, would that preclude me from using it for a downpayment, plus closing costs? I plan to season the money for several month's, while I pay off my CC's with my income.

I know this is a little expensive, but it speeds up the process by about a year for me. I've already factored it into my debt to income ratio, and it won't effect it that much, once the CC's are paid off.

My income is decent, and my credit is more than excellent. I just won't have any cash on hand after paying off the cc's. After doing this, I would just turn my credit paydown abilities towards the personal loan.

I'm planning on doing a 5% loan and buying a multi-unit owner-occupied building. If I buy cheaply enough I could hold on to some of the cash for rehab as well. I also found a non-fha loan that will do multi-units.