Financing in San Benito>Question Details

Esmer33, Home Buyer in San Benito, TX

Do lenders finance a loan for 34,000 to purchase a house?

Asked by Esmer33, San Benito, TX Sun Dec 27, 2009

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A lot of lenders won't go that low.
The reason is that some of the fees are fixed(not a % of the loan amount) and this creates a situation where the fees are a high % of the loan amount and approaching predatory lending.
Some credit unions will gladly do this. And I think BofA still does them.

Average mortgage broker will likely shy away from this.
1 vote Thank Flag Link Sun Dec 27, 2009
Tom had it right. You'll pay about 3% of the loan amount for loans down to $40,000. That in addition to the closing costs will push you over the predatory lending limit. The loan officer can do your loan for free but it's hard to find companies willing to let them do it. I'm currently doing a loan for $40,000 and will not get paid for it but it will help one more person become a homeowner. You'll need to find a way to push it up to the minimum ($40,000) at least in the way of repairs or having the seller pay more in closing costs (although the max is 6% for FHA - 3% for FNMA) and that's not enough to push it over the top. As Tom mentioned, try a Credit Union or a small local community bank. You may also be able to find a relative or friend willing to take the money from a home equity line to lend you the money. Make sure you create a contract to keep friends, friends and business, business.
0 votes Thank Flag Link Mon Dec 28, 2009
Lenders may not, but private investors like myself do buy them if the property seller carries back financing in the form of a promissory note secured by a deed of trust and there is clearly documented (on time) payment history. The better the note is created, the less it gets discounted.

If you go to my site that talks about the "best note" and show it to the property seller and they implement the ideal criteria in combination with well prepared documents by qualified professionals then they can get more for it if they decide to sell it to me.

If you have any questions please ask

Regards,
Andrew Distad
Investor
Cash4PromissoryNotes.com
(760)-296-1573
0 votes Thank Flag Link Sun Dec 27, 2009
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