CAN I BORROW MONEY FOR FHA DOWN PAYMENT AGAINST SOMETHING OWNED?

Yes... this is known as "secured borrowed funds", and is allowable. No seasoning required. The new loan will need to be disclosed, with the new loan added to your debt ratio. I've had many clients over the years go take out a loan (usually against a car) and use that for down payment. In MN or WI, visit www.JoeMetzler.com

Henry is correct. You can secure a loan against an asset you own, i.e. a vehicle or 401k. Before obtaining the loan determine what the payment is and advise your loan officer. They will add this to your debts to ensure that your debt ratio is still within guidelines.

Yes you can do this and it is important to discuss with your loan officer ahead of time. Some things to consider however. You you so tight on money that you have to borrow the 3.5% from an asset, it increases the chances you are "tight" on other qualification parameters. An underwriter could consider this loan a "layer of risk" and if there are others, it could contribute to a loan denial in the process. When Pre-Approved by a loan officer, they typically run your loan through an "Automated Underwriting System". This AUS typically doesn't have the ability to take layers of risk like this into consideration resulting in a preliminary approval that may be false. This is why you want to work with an experience loan officer that know how to structure and analyse your loan to take these into consideration. The Realtor you are working with will have good insight into good local lenders that have this skill. Good Luck!!

Not advised, but if you do, have the money in your account for no less than 60 days prior to your application.

Hi John, Yes you can do this. Actually it's quite easy to do and you do not need to season the funds for 60 days. The new Loan Terms must be disclosed to the Loan Officer and underwriter so the payment may be included in your debt to income ratio. Since that is the case it may reduce the amount of home you can purchase but it is not a problem to borrow your down payment.