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Looking for mortgages under $50,000

Posted on: 13th Apr, 2009 06:49 pm
There are amazing opportunities to purchase foreclosures in the Cleveland and the Akron areas. Prices of nice homes that we're interested in buying will be in the $15,000-$30,000 range.
Is anyone offering mortgages for these amounts? we're willing to commit for a certain number of them per year.
Any help is appreciated. My wife and I have very high credit scores.
Thanks.
Jonathan Fields
216-647-7701
When you say very high score?Are you above the 720 mark? If so i dont see a problem with going to a bank and getting a loan for the amount you require.
Posted on: 13th Apr, 2009 08:32 pm
Hi,

You shoudl be able to get Mortgage loan for any amoutn as long as you have good credit and can show income to pay it monthly.

May be other option would be lookign at a personal loan, but the rates might be high.
Posted on: 13th Apr, 2009 08:32 pm
Thanks for the replies. Both my wife and I have credit scores above 720. We asked at two different banks and both said that they don't give out mortgages under 50K.
Posted on: 14th Apr, 2009 04:13 am
Hmm wow i found that really weird... As posted above if you have the required income/credit score you can take out a personal loan and pay the house in full but you will not get a 5-6% rate on a personal loan as to a conventional loan.
Posted on: 14th Apr, 2009 07:08 am
personal loans are generally not available for the purchase of real estate. you'll find most lenders resistant to granting loans for such low amounts. most of the rationale is profit-driven. it takes just as much work to process a $50K loan as it does a loan for $1million. that's the source of resistance. you may find a local bank or credit union to help you out, but major lenders are not happy with loans of this size.

furthermore, if you are seeking to purchase for investment, you'll find that borrowing opportunities will dry up quickly, as there are restrictions on the number of homes you may own as investments.

credit score and income are not relevant to this discussion, frankly. the risk/reward equation is far more relevant.
Posted on: 14th Apr, 2009 09:59 am
my wife and i have credit scores of over 800. no one will lend us less than 50K on a mortgage either..and yet, we can get unsecured for 40K as fast as we can sign the dotted line. good old american greed i guess!
Posted on: 05th Sep, 2010 07:58 am
Actually, there's more to it than that. The expenses that apply with a mortgage loan also apply for lower loan amounts such as you mention. Unfortunately, these expenses typically cause the loan in question to become "high-cost" and lenders are prohibited from making those, needing to "fix" the situation. There's typically no real fix, because the expenses are pretty much etched in stone. Hence, no loan at all.
Posted on: 09th Sep, 2010 10:25 am
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