Can personal loans be used to buy a house?

A personal loan cannot be used to buy a house in most cases. Even if a personal lender doesn’t prohibit this, conventional and FHA mortgages forbid using personal loans for down payments on a home. And it usually isn’t practical to use a personal loan to buy a home outright, as it’s rare to find a personal loan for more than $100,000. However, if you want to buy a small home or one whose cost can be completely covered with a personal loan, it might be a possibility. Just be aware that personal loans generally have much shorter repayment periods than mortgages, so be sure that you’ll be able to make the monthly payments.