How to Buy a Home Using Credit Cards

How to Buy a Home Using Credit Cards

You are probably thinking that buying a home using credit cards is a little odd. What many people don’t realize is that this is something than people do every day. Many people feel that if they can not qualify for a home mortgage than they will need to find other ways to finance the purchase of their new home. One thing to keep in mind if you are going to try and use credit cards to purchase your home is the fact that you will be paying a very high interest rate on your credit cards. What some have done is spend two years time applying for various credit cards.

After they have received several credit cards totaling the amount that they need they then look into purchasing their home. In most cases people who use credit cards to buy a home will look into buying foreclosures since they are usually a lot cheaper. They will then use the credit cards to cover the cost of all of the homes, and make monthly payments to all of the credit card companies. Obviously there are some pros and many cons to this particular idea. Some of the pros are the fact that you will not have to pay some of the fees that are usually associated with getting a home loan. You will also get to the closing table a lot quicker than you would if you were getting a loan.

The down side is that you will have to pay off the credit cards very quickly. What some people have chosen to do is use the credit cards to buy the home and fix it up and then sell it. This has quickly become known as flipping a house. You purchase it for one price, fix it up and sell it for a higher price. You will then make enough profit to pay off all of your credit cards and you will have made enough profit to purchase another home, this time using cash. Of course you will be taking a risk, especially depending on how long it takes you to make all of the necessary repairs. In addition to how long it will take you to sell the property. If you are considering buying a home using your credit cards you will need to think long and hard about whether or not it is really something that you want to do. If you are looking into getting into the business of flipping homes for a profit than this is definitely a good way to get started.

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