Posted on: 04th Nov, 2008 01:25 pm
I'm a first time buyer, and I have found a house that is only $30K and I have a $6K down payment (20%). I have excellent credit and very little debt. I would think getting a $24K mortgage would be a cinch.
Not so fast. I have been told by more than one mortgage broker that borrowing less than $37K is nearly impossible. Their answer is that I should look for a more expensive home or ask the seller to pay closing costs, but having them pay closing costs in no way makes up a difference of $13K between the $24K I need and the $37 they want me to borrow.
This seems nuts to me. Any advice on this kind of situation? I have Google repeatedly and can't come up with a thing.
Thanks!
Not so fast. I have been told by more than one mortgage broker that borrowing less than $37K is nearly impossible. Their answer is that I should look for a more expensive home or ask the seller to pay closing costs, but having them pay closing costs in no way makes up a difference of $13K between the $24K I need and the $37 they want me to borrow.
This seems nuts to me. Any advice on this kind of situation? I have Google repeatedly and can't come up with a thing.
Thanks!
bruce, the vast majority of lenders offer products that require no minimum loan amount. "one mortgage broker" isn't enough to survey to get this information. furthermore, it occurs to me that this particular "one" is probably more concerned with his own pockets than your ability to acquire a loan.
do not (repeat: do not) inflate the price of a home in order to secure yourself payment of closing costs. that won't work in a market such as this one.
move forward with the house you like and move aside of this broker and seek more professional help in acquiring a mortgage.
do not (repeat: do not) inflate the price of a home in order to secure yourself payment of closing costs. that won't work in a market such as this one.
move forward with the house you like and move aside of this broker and seek more professional help in acquiring a mortgage.
gmakerley, thank you sooooo much for the reply! That was exactly what I needed to know. I will seek out other mortgage brokers and will definitely NOT put all my eggs in one basket -- especially not this one. Thank you again!
Hi BruceNOLA!
Welcome to the forums!
Yes, George is absolutely right in saying so. You should do some mortgage shopping and check what the other lenders are offering. I think you will get a better lender who will be offering you the loan amount you need.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
Yes, George is absolutely right in saying so. You should do some mortgage shopping and check what the other lenders are offering. I think you will get a better lender who will be offering you the loan amount you need.
Feel free to ask if you have further queries.
Sussane
I would check with a local bank. You might have to get a shorter term loan, but the terms should still be good.
