"Put the Down Payment on my AmEx"

By
Real Estate Agent with Alexandria Brokers Realty Broker License 20502505

Amex Coming up with the money for a down payment on a new condominium may soon be as easy as charging it. American Express is expected to announce today that it will allow some customers to use its cards to make condominium down payments.

To read the full text of this article by the Wall Street Journal's Jane J. Kim, click here....

Comments (4)

Rich Kruse
Gryphon USA, Ltd. - Columbus, OH
I tried to buy a car on my AMEX once so I could get the points.  The dealer wouldn't do it.
Dec 05, 2006 11:39 PM
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate
wow, that would score the points, wouldn't it?  I think that could be a very dangerous tool in the wrong hands.  What happens if, at the end of the month, they don't have the downpayment?
Dec 05, 2006 11:57 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Craig,

Well now we know where to finance the down payment, but what about the rest of the purchase?

Mortgage lenders always ask "is any of the down payment borrowed?" It's on the 1003! They ask because un-scurried borrowed funds are an un-acceptable source for most mortgage programs. In the WSJ example we're talking about 10% of a $1,200,000.00 purchase either due in 30 days or borrowed at credit card rates, is this buyer sane?

On the other hand the article talked about paying rent with your card, this is very interesting. I've had very high paid clients who use very little credit this would add two good lines (rent and the credit card) to their credit report for only one payment. That could be a great idea for new professionals needing to build credit without adding to their debt.

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org

Dec 06, 2006 02:50 AM
Boomer Jack Boardman & Carl McIntyre, the Codgers
Noted Curmudgeons - Saint Paul, MN

In these days of record high consumer debt, record high foreclosure rate in both of the Twin Cities, using an AmEx card for a down payment on a home is, in my humble opinion, a very bad idea.

Jay Merton
Dec 08, 2006 08:52 AM