It seems 3.5% is the minimum down payment these days and my wife and I are now in the process of saving about $20k to purchase a $400k home later this year.
I had an idea for getting our savings up to $20k quicker so tell me if you think there's a problem with my thinking.
We have no credit card debt and $200k/year household income but only $5,000 savings toward the home purchase currently.
We spend about $5-6k per month on a credit card that is paid off monthly. I'm thinking about letting the credit balance grow and just put money in savings until we get the $20k put away in savings.
I'll put it on a 0% card so I'm not paying interest than just begin paying off the balance monthly after I reach $20k in savings
Lenders are requiring 3.5% - 5% down payment in cash but they only require that the progression of growth is shown (you can NOT just get a cash advance on a credit card). I will be able to show the progression of growth in savings account and then I'll have a $12-15k balance on a credit card that equals a monthly payment of $250 or so which shouldn't affect the loan qualification too much.
Would this work or am I missing something?