How To Use a Credit Card to Make a Down Payment on a House

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A cash advance from your credit card could serve as a down payment on your house. However, it could be an expensive way to help purchase your new home. According to "The New York Times," it would take 32 years to pay off a $10,000 credit card balance at 18 percent interest if you made only the minimum payment each month. That means it could take longer to pay off the cash advance than your 30-year mortgage. Despite that, cash advances from credit cards are an option for some people. Just be sure to take the cash advance well before you apply for a mortgage.

Check your credit card billing statement or call your card company to find out how much money you have available for a cash advance.

Get a cash advance by taking your credit card to a bank. Provide the teller with your credit card and any requested identification, such as a driver's license.

Deposit the money into a bank account -- preferably a savings account so that it can earn interest. The money should be deposited a minimum of 60 days before you apply for your mortgage. That process is called "seasoning," and will ensure that the debt shows up on your credit report as you are considered for the mortgage loan. It will also allow you to honestly point to the money in your savings account as a source for your down payment.