Home Buying in Thomaston>Question Details

Kelo, Home Buyer in Thomaston, GA

I'm interested in buying a house that lists for 33,000 but i understand that most lenders won't lend that amount...it's a HUD house,

Asked by Kelo, Thomaston, GA Fri Apr 1, 2011

any advice?

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7
The reason that many finding financing for a loan amount that low is that there are both state and federal fee restirction tests that mortggae loans must pass. On the smaller amounts, many times, the fees would exceed the allowable thresholds. While the ruels were designed to prevent predatory lending, tehy have had unintened consequens on smaller loan amounts.

So long as the loan will pass the fee tests, it can be done.

Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
1 vote Thank Flag Link Mon Apr 4, 2011
Your best shot at obtaining a smaller loan (and believe it or not $33,000 is a small loan) is to check with your local credit union(s) or the bank where you having your checking/saving accounts. Most larger lenders won't lend on small loans as there isn't enough profit in them.
1 vote Thank Flag Link Fri Apr 1, 2011
Contact HUD lenders... HUD lender for HUD home... Problem is not that ou can't get. Loan if you qualify, problem is that there are so many cash buyers, sellers will choose the cash. Try find an owner will carry property, where it'd the seller themselves who will finance you!

I have one condo where my seller will carry the loan on a $45k price for possibly 5-10k down for 5+ years. Contact me if this interests you.
0 votes Thank Flag Link Fri May 4, 2012
TRY UNITED BANK , BANK OF UPSON OR THE BANK ACROSS THE STREET FROM POST OFFICE.
0 votes Thank Flag Link Fri May 4, 2012
Kelo,

There are lenders who are willing to make loans for purchases of properties in that price range. Regretfully, they are very expensive, with higher closing costs, higher interest rates and more. You'll likely be required to have a higher than traditionally acceptable credit score too because many lenders will classify this type of mortgage as an investment type loan.

Hope that helps.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Sat Apr 2, 2011
Hello Kelo,

Shop around different lenders; also, try posting this question under the mortgage category, and I'm sure some interested Lenders will contact you!
0 votes Thank Flag Link Fri Apr 1, 2011
some will lend if you are willing to pay the financing cost (3K-5K) .... just ask them.
0 votes Thank Flag Link Fri Apr 1, 2011
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