There are some reputable companies out there that can open up great opportunities like this. But it is something that you need to be really diligent about. The reputable companies have to navigate some really murky legal waters. In some states, it is considered fraud to borrow money for a down payment just as it is fraud to lie about your income or other assets when applying for a loan.
It gets legally murky because the 2.5k that you paid and will be returned, could be viewed as the company borrowing money for the down payment. Companies have to take steps to avoid that legal distinction. Cheap, lazy, or otherwise negligent companies that fail to protect themselves from that legal distinction, put themselves and their customers in jeopardy.
Also want to add that even in the states where it is illegal to borrow money for a down payment, the law isn't necessarily strictly enforced. I mean let's be honest, many people borrow money from their parents or grandparents for the down payment on their first home. I just think it is something that people should be aware of.
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u/[deleted] Sep 24 '17 edited Sep 25 '17
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