It depends on the bank and what their minimum mortgage amount is. I have found in the metro DC area, $50,000 is the bottom limit for mortgages, and even then they don't like to make loans that small because they don't make much money off it. In DC, I would use a smaller local lender for an easier time getting a small mortgage. In more rural areas or areas, such as Detroit, Phoenix or most of Florida where the market is severely depressed and home prices are much lower, the loans available may be lower and easier to find for that amount.
You must still come up with 3.5% down payment for an FHA.
Also, an FHA loan has to be for a property you will be occupying. You cannot use it to purchase an investment property or a second home.
While it is true it is best to consult a lender 3% is not uncomon. But please don't take this as an absolut because many lenders will have access to programs which can help lower downpayments. There are new conventional loans which will partner with down payment programs. Please contact the lender below to see if he can assist you.
Jeffrey Neilsen â€“ Movement Mortgage
8100 Boone Blvd. Suite 230, Vienna, VA 22182
phone 703 447-8541, fax 855 236-0831