My recent wife and I have our eye on a nice home that is being auctioned off by an elderly lady who's moving in with her daughter. In our home search, we already have pre-approval for up to 250k FHA mortgage, with down payment + estimated closing costs of 16k that we could comfortably afford.
Our problem is, the home we have our eye on requires 25k down on the day of the auction, and we're a little short from having the savings to put that down comfortably. The mortgage company says we can't finance the down payment for a home; it has to come from savings.
I'm wondering: since the 25k down requirement is from the seller/auctioneer and not the mortgage company, is there any way to put down 16k of our own cash and finance the remainder of the down payment for the auction? I get letter offers in the mail for personal loans all the time. Assuming that taking out a personal loan doesn't hurt my debt-to-income ratio or credit score too much, would it be possible to borrow 9k in a personal loan, to afford the 25k down? The FHA down payment of 3.5% would still come from our own savings.
I don't know much about the legality or common policies. Any help at all in ideas or resource, terms to research, etc., would be greatly appreciated.