Special offer
Morris Real Estate Marketing Group, Marketing for realtors made easy! (Morris Real Estate Marketing Group)

Spam prevention
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Ok, so this is more of a down payment via credit card, get a loan for the rest.  It looks like a nice gimmick and an interesting take on the process.  I don't see it doing too well though.  How many people would buy a house site unseen?

Oct 14, 2015 06:34 AM
Rainmaker
891,971
Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

I like Conrad Allen's answer! Yeah, who is going to pay the cc fees? have a great day, Lina !

Oct 14, 2015 06:49 AM
Rainmaker
1,683,912
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

I doubt it, because there are many that have learned their lesson about credit cards.  Like me, I will not have one.

Oct 14, 2015 06:49 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Lina Poka, MBA It appears the credit card only covers the deposit. The buyers are purchasing a condo site unseen and on an impulse. I see issues with these impulse buyers who may not even qualify for the purchase. Some day real estate companies may take credit cards for the EMD, but not this way.

Oct 14, 2015 05:27 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Whenever IRS and banks will take a credit card for paying tax and mortgage that is when you can use it for real money...... 

Nice try but no cigar......

Oct 14, 2015 01:56 PM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

As Michael Setunsky and Annette Lawrence , Palm Harbor, FL 727-420-4041 point out this is for the deposit not the purchase. I don't think we will have buyers financing the full down payment on credit cards. That's even more risky than the worst loan practices before the Great Recession.

Oct 14, 2015 07:29 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

GOD, I hope not. This really will screw things up!

Oct 14, 2015 06:50 AM
Rainmaker
763,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I see the use of the term credit card vs. mortgage to be simply symantics.  The loan seems to be the same to me.

Oct 14, 2015 05:51 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

It already is a norm. As the article indicates the credit card only secures the deposit, for pre-construction. The buyer still needs to apply and secure a mortgage.

"Once the transaction goes through, the property is yours — as long as you can secure a mortgage and pay the rest of the home's price tag, which will be required down the road as the project gets built. "

Hmmm. is it yours or not yours?

Oct 14, 2015 05:26 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I see many issues coming down the road with this. My instinct is that if this were truely a viable option it would have been around long ago. Credit cards are not new, after all.

Oct 14, 2015 04:23 PM
Rainmaker
1,577,943
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I can't imagine very many people will have the credit line or interest in doing so. 

Oct 14, 2015 11:54 AM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Just another gimmick.

Oct 14, 2015 09:42 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I don't think so either. Most people don't have a limit high enough to buy a home that they would want to live in.

Oct 14, 2015 09:40 AM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Another dangerous option for sure.

Oct 14, 2015 06:55 AM
Rainer
392,768
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

I think some buyers will find that having excellent credit gives them an edge when buying investment properties.

Oct 14, 2015 10:47 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not think it will happen soon because of stricter guidelines for lenders.

Oct 14, 2015 09:40 PM
Rainmaker
2,362,977
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I wonder if you get points on your credit card too

Oct 14, 2015 09:06 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I had only one transaction where the credit card was required by the online auction to place a bid on the property.

Making it ''a norm'' does not sound like a good idea to me. I see too many defaults on credit cards, so I would not recommend to use this way to pay an EMD for a home, unless your money are coming very soon and this is a temporary solution.

Oct 14, 2015 05:10 PM
Rainer
438,218
Doyle Davison
Hawaiian Beaches Hawaii - 714-968-6767 - Huntington Beach, CA
30 years as your Concierge services listing broker

thats going to big a big bill with a mongo interest rate. I hope it will only be short term... I don't think this will become the norm,  enlist in the service and get a nice VA loan...

Oct 14, 2015 03:30 PM
Rainer
183,407
Judith Sinnard
SMARTePLANS; Houston, Texas - Houston, TX
The SMARTePLAN Lady

If any of your are familiar with the "O Street Mansion" in Washington DC .. the lady put the down payment on her credit card .. because she had no money, but had a "vision" of what it could be... back in 1980 I think?  Talk about a leap of faith. Man! imagine how may frequent flyer miles you'd be banking!!

Oct 14, 2015 09:53 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I have heard of using a credit card for downpayments.  But I could not imagine people having enough available credit on a credit card to buy a house.

Oct 14, 2015 08:47 AM
Rainer
13,383
Sandra Williams
Capital Direct Funding - West Covina, CA
Private Money Lending in California

Hopefully not. Not sure if that would be a sound financial decision. 

Oct 14, 2015 07:41 AM
Rainer
8,164
Jessica Friedland
RE/MAX Infinity Group - Spokane, WA
Real Estate Broker in WA and ID

Wow! Things really are changing in the Real Estate industry! I just don't see this becoming the norm. It would have to be an impulse buy most likely, and I don't have many buyers who buy sight unseen even with an agent doing a walkthrough and video for them.

Oct 23, 2015 04:23 AM
Rainmaker
282,018
Nancy Robinson Ranked #6 in MI
Century 21 Town and Country - Royal Oak, MI
#11 Century21 Realtor in the US, #16 in the World

The new norm.........  that would make me sad,  I just started thinking people were trying hard not to be dumb asses again.

Oct 17, 2015 12:24 PM
Rainmaker
864,658
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

I actually have heard a few successful investors who started that way. Keep in mind that most of their investments are short term.

Oct 17, 2015 05:02 AM
Rainmaker
323,664
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Lina, millions of people love the plastic, and it appears there is a push in our land to move away from cash.  The banks and the government each want more control over our use of money, so I suspect we are on a train where we are not the engineer.  That train whistle is a blowin...

Oct 17, 2015 12:18 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't think that very many people will buy sight unseen without some advice as to what they may or may not be getting into.  

Oct 15, 2015 04:28 AM
Rainmaker
1,562,386
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Caveat Emptor!!  Buying a home online is bad enough, but using a credit card, processed through an unknown site . . . OMIGOSH nothing could ever go wrong with that {rolling eyes}.

Oct 15, 2015 03:57 AM
Rainer
428,933
Chris Lima
Turtle Reef Realty - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

In the days of no doc loans, I remember people doing this.  If you obtained a certain percentage of the down payment, you could pretty much get a mortgage on your signature.

I did purchase a car with a credit card.  It was an awesome two years with zero intersest.  I couldn't pass that up.  The dealership wasn't thrilled and neither was my husband at the time!  LOL

Oct 15, 2015 03:40 AM
Rainmaker
61,716
Scott Thompson
Columbia Mortgage Plus - Blue Springs, MO
Commerical Finance - Blue Springs, MO

AMEX will do it if you have the juice.

 

Make it a Great Day.

Oct 15, 2015 03:08 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Lina Poka, MBA I am not sure if this will work! Little apprehensive.

Any credit card transaction has additional cost which someone has to pay. 

Though with the speed at which the world is changing, anything is possible!

Oct 15, 2015 01:50 AM
Rainmaker
108,016
Scott Lawson
America's Home loans - Santa Rosa, Petaluma Mortgage Broker - Santa Rosa, CA
Mortgage Broker FHA, VA, refinance or purchase

Borrowed funds must be secured against an asset in order to be used as a down payment for a mortgage. Unsecured debt (credit card) is considered unacceptable. An unscrupulous mortgage advisor would have to have the prospective borrower take an advance and season the money in a bank account for 60 days--not a good practice.

 

The credit card concept, as represented, will not work for a home loan... 

Oct 15, 2015 12:04 AM
Rainmaker
1,513,143
Raymond E. Camp
Ontario, NY

At the interests charges I don't think it will last.

Oct 14, 2015 11:11 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Wouldn't that be interesting, embrace the tech... 

Oct 31, 2016 03:41 PM
Rainmaker
4,572,283
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

That would be a hefty purchase in California.   Can you provide another piece of identification before we proceed?

Nov 12, 2015 02:45 AM
Rainer
41,630
Morris Real Estate Marketing Group
Morris Real Estate Marketing Group - Toronto, ON
Marketing for realtors made easy!

Thank you everyone for participating and answering the question. There was some very insightful answers. 

Oct 16, 2015 08:12 AM