All Forum Posts by: Myeasha Jones

Hi Rose, I would suggest an alternative for future use that will not impact your credit. Have you heard of Bank on Yourself-type policies? It's a way to set cash aside and allow it to grow with guaranteed returns and you can borrow against it at a low interest rate at any time and it won't impact your credit score. Best part is, your money will continue to grow even while you have loaned it out to yourself. I'd be happy to tell you more and discuss if it is right for you if you are interested. I'm a Bank on Yourself professional and personally have my own policies that I use to fund my real estate investments.

I can only speak from a lender's perspective, but we're going to want to see some "skin in the game" from the borrower. Stuy after study has shown that the less a person injects into a deal, the less likely they are to pay the deal back. In addition, the lender is going to incur costs including losses do to the time value of money if you stop paying and they have to take the property back. They are going to want to see some cushion and they will prefer that some of it comes from you personally. You might get a gift of seller concession, but putting money into the deal is pretty important to most lenders. Now, if you do decide to pull money from your current home, most lenders would prefer to see some "seasoning" of funds in your bank account. They'll ask for the last 2 months worth of bank statements and they usually won't want to see a large deposit in there coming from borrowed funds. If, however, that is part of the beginning balance of the earliest bank statement, then they will consider that "seasoned" usually and it likely won't be considered borrowed funds. I do hope that helps. 

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