Karen,

There is not a law that will limit banks to borrow money. It may some of the lenders consider that they will not make money from this amount. Most of the banks will finance you for under $60,000. I have an investor who usually purchase houses under $60,000 and does not have any problem.

Karen,

Michelle brings up a very good point. The State of Michigan has laws allowing agents to work for the benefit of home buyers under a buyers agency contract. This can be for one home, one day, one week, whatever time period you and the agent agree upon.

Michelle and Tammy both have very good online reputations and would be worth contacting for more information in your area.

Not sure why he said that? Was he trying to do a FHA/203K or some kind of other program that includes cost? Or was he just saying that is the lowest they go? Not all lenders are created equal, everyone has different options and programs............search out lenders and ask what is available. Just because a home was worth 90, 4 years ago................it does nto mean that is the value of the home today. I hope you have a buyers agent who can do comps for you to let you know what homes "like" the one you want to purchase is worth now.
MSHDA loans will go that low, FHA loans will go that low.............how ever with both of these loans the home is subject to an appraisal, they will not only look at comps they will look at the condition of the home, and will decline to finance it if there is peeling paint, broken mechanicals, etc..........................
A experienced agent can look at the home and tell you if there are any red flags and maybe get the seller to "fix" things so you can purchase it.

Karen,
That statement is false. The broker you spoke with doesnt stand to make much money at all off of your loan so that's his way of saying it's not worth his time. Speak with a reputable local institution or get a referral from your agent or Trulia. Assuming you're a well qualified borrower someone should be able to help. Good luck!

This is ridiculous. I know of mortgage companies that are loaning for less than $60K. I'm not sure of all the specifics with you and your loan and what you're looking for... so some more specifics would probably be helpful, but I can give you some good referrals to other mortgage lenders if you so desire.

Karen,

Several banks were lending from $35,000 unless things have changed in the past few days.

Try the links on this website http://www.hud.gov/local/mi/homeownership/buyingprgms.cfm or http://mumloans.com my office affiliated company.