The article from KUTV discusses the possibility of using a personal loan to buy a house, highlighting that while it is technically possible, it is generally not advisable due to several reasons. Personal loans typically have higher interest rates compared to mortgages, shorter repayment terms which can lead to higher monthly payments, and smaller loan amounts that may not cover the full cost of a home. The article explains that personal loans are unsecured, meaning they do not require collateral, which contributes to their higher interest rates. Instead of using a personal loans, the article suggests considering traditional mortgage options, such as conventional loans, FHA loans, or VA loans, which are specifically designed for home purchases and offer more favorable terms. Additionally, the article advises potential homebuyers to improve their credit score and save for a down payment to secure better mortgage rates.
House & Home
Thu, April 24, 2025
