Can you use a credit card for a down payment on a house?

No, you cannot use a credit card for a down payment on a house. Home sellers and lenders do not accept credit card payments directly. Mortgage lenders require that the money must be in your personal banking account for 30-90 days before you can accept an offer. Besides, credit card limits generally are not high enough to accommodate a down payment on a house.

Even if you could use a credit card for a down payment on a house, it is not a good idea. It would almost certainly result in high credit utilization and an increase in your debt-to-income ratio. That may affect your credit score right when you’re applying for a mortgage. As a result, you could get approved with a higher APR for your new mortgage, or it could even cause your mortgage application to be rejected.

Alternative Ways of Using a Credit Card for a Down Payment on a House

If you really want to use a credit card for a down payment on a house, you could potentially do so in a very roundabout way. For example, apps like Venmo make it possible to move money from a credit card to a friend’s bank account. Then, your friend could transfer the funds to your bank account to get seasoned for a down payment on a house. However, there are fees and daily limits to contend with.

The other method is to take out a cash advance, which is very expensive and won’t give you much spending power. A credit card’s cash advance limit is usually just a fraction of your overall limit, after all.

Things to Know Before Using a Credit Card for a Down Payment on a House

• Ineligible payment methods: Major lenders do not accept down payments via credit cards or third-party money-sharing apps.
• Seasoning requirements: Mortgage lenders typically require down payment funds to spend 30-90 days in a bank account to get “seasoned”. Sixty days is most common. Just note that some exceptions may apply.
• Alternative ways of paying with a credit card: You could do a cash advance for a down payment on a house, usually through an ATM withdrawal or a convenience check. But it’s not a good idea due to the high fees and APRs that might apply. Interest also starts accruing immediately, with no grace period.

A balance transfer credit card, on the other hand, won’t help you make your down payment, but it could save you some money after the fact. You’ll have to take out your mortgage first, then transfer part of that balance to a credit card with a 0% balance transfer APR and a low transfer fee.

In the end, using a credit card for the down payment on a house isn’t the best idea, if it’s even possible. You won’t be able to pay most official closing costs with a credit card, either. But there’s usually a wide range of expenses associated with moving into a new home, and you can charge many of them to a credit card. They may include things like inspections and appraisals, for example.

If you're not sure you've got all the money right off the bat, I'd just wait a while, or find a better deal.

Using a credit card for emergencies works okay most of the time, but not in this case.

That is not a typical thing to do, since the APR on credit cards is generally considerably higher than on any type of loan. Even if you have a great rewards credit cards, it’s not really the best way to go. It can be done technically, but you’ll most probably have to get a cash advance, and those are very costly.