Here’s a stupid question, but hear me out...

[Christopher Lane]

Hey everyone, I think I have a stupid question, but the more I think about it the better it actually sounds.

I’m looking to buy my first property and the only thing holding me back is a down payment that won’t completely drain my savings.

Here’s the dumb question - should I take a cash advance from a credit card for the down payment?

Generally speaking the answer is a hard no. But... I’m a veteran and I’ve applied the SCRA benefits to my credit card and my interest rate is capped at 4%, by law 6%, but my bank does 4%. If I took a cash advance out for the down payment the rate would be cheaper than an investment property mortgage rate.

So, what do I do?

Is this a crazy idea, or am I possibly on to something?

[Cody L.]

Originally posted by @Christopher Lane:

Hey everyone, I think I have a stupid question, but the more I think about it the better it actually sounds.

I’m looking to buy my first property and the only thing holding me back is a down payment that won’t completely drain my savings.

Here’s the dumb question - should I take a cash advance from a credit card for the down payment?

Generally speaking the answer is a hard no. But... I’m a veteran and I’ve applied the SCRA benefits to my credit card and my interest rate is capped at 4%, by law 6%, but my bank does 4%. If I took a cash advance out for the down payment the rate would be cheaper than an investment property mortgage rate.

So, what do I do?

Is this a crazy idea, or am I possibly on to something?

Generally speaking it’s a hard no? Why? I’ve done a lot more traditionally “no-no”s in order to buy and grow my portfolio. Credit card. Loan shark. Pawn. Cashed out 401k. Used my property tax set-aside etc 

If it’s a good deal, do what you gotta do