Financing in Jacksonville>Question Details

koran132, Home Buyer in Jacksonville, FL

Hi I have a credit-score in the 700 but find it very difficult to obtain a home- loan in the 20k. What is my best possibilities.?

Asked by koran132, Jacksonville, FL Thu Oct 3, 2013

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We can go down to 35K minimum and we are local and fast. Let me know at 904.210.2384.
1 vote Thank Flag Link Thu Oct 3, 2013
Thank you . I'll keep your number
Flag Thu Oct 3, 2013
One other option is a property with owner financing.

Incidentally, forget a hard money loan. They're for short periods of time (i.e., 6 months), they're outrageously expensive (in the range of 5 points and 15% interest), they only cover about 65% of the value of the property, and they're not made to people who plan on living in the property.

On the other hand, private funds are a possibility. That'll be expensive, though. There's more variability with private lenders, but it might be in the 3 points/12% range. And it won't be a 30-year loan. It's all negotiable, but perhaps 3-5 years.

A personal loan from a bank or credit union might be your best choice if you don't have friends or family who'll lend you the money.

Hope that helps.
1 vote Thank Flag Link Thu Oct 3, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
Most banks won't make loans for less than $40K - $50K... it is just isn't large enough for them to mess with.

I would recommend either finding a home that the owner will finance, or borrow money from a private lender or relative.

A couple other possibilities are:

1. Find a "work for equity home", This is where the house needs work but the owner holds the small mortgage while you repair it. Once you have it repaired and the value has increased to $40K - $50K you would refinance at a lower rate.

2. Consider a mobile home. They are typically available in very good condition in the $20K range and financing is often available for new mobile homes. By the way, some of these are VERY nice

1 vote Thank Flag Link Thu Oct 3, 2013

I was just speaking about this to one of NY mortgage brokers. The problem is Banks are not allowed to charge you enough to make up the cost of putting together a loan that small. They are limited to the percentage amount charged on loans . This is in place to protect borrowers from being taken advantage of.

I am being told some credit unions are lending as little as $25000 but have not confirmed it yet.

In the meantime I believe you are left with borrowing the money from private and hard money lenders. You may also consider offering to buy the home with Seller Financing.

Let me know if I can help in any way. I hope this helps.

Alexander Rose
Real Estate Broker
1 vote Thank Flag Link Thu Oct 3, 2013
feel free to email me i have no minimum loan amount requirement.
Flag Fri Oct 4, 2013
That's the reply I get from most brokers. Good ideas, thanks. Ill keep you in mind.
Flag Thu Oct 3, 2013
Alex is correct, Vystar was loaning small amounts (like $25K) on condos. The last time I talked to them it was a short term loan with a variable rate and you had to put 25% down.

These things change all the time though so don't take this as gospel. Call them to verfify their current terms and loan limits.
Flag Thu Oct 3, 2013
Your credit doesn't relate to the fact that you're not getting a loan. It's the small loan amount that's causing you trouble. Most lenders will not give out loans less then 40K-50K because it's not really worth it in their eyes. You should try mainstream banks like Bank of America or Wells Fargo. They can possibly get you that loan. Well I hope this gives you better understanding! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887
0 votes Thank Flag Link Fri Feb 14, 2014
Koran; My bank has no minimum loan amount for owner occupied properties. Give me a call I am available 7 days a week.

Marc D’Angelo
Mortgage Banker
678.442.3405 Office
678.985.6834 Fax
404.925.8291 Cell
apply online:

50 Chastain Center Blvd. | Kennesaw, GA 30144
NMLS# 75615 | 658834
0 votes Thank Flag Link Wed Jan 15, 2014
There are a LOT of reasons why ANYONE would have difficulty in securing a mortgage in the $20K's. It isn't just you.! We need to CAN get a the way...a credit score in the 700's in this economy is wonderful...congratulations!

Donna Delegal
"The Real Estate Lady"
Oceanside Real Estate
(904) 732-PACK 732-7225
0 votes Thank Flag Link Sat Oct 12, 2013
Contact Patricia Del Bagno with Trustco Bank, they will give you the loan.
Great bank to work with.
0 votes Thank Flag Link Thu Oct 3, 2013
Thank you, way to go, this is important to me , I'm trying to build something , starting out small and them grow.
Flag Thu Oct 3, 2013
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