There are only a couple of solutions I know of, use a HELOC or Home Equity loan that have little or no closing cost, or go to a finance company and get a personal loan secured by the house. Both of those methods would work in my area, hope it helps you solve your problem, good luck,
A lot of people have identified that the market has started to go up; that $50,000 house will soon be $60,000.
But the Banks want to make money!
How much $$ is there in a $40,000 loan? With about the same interest rate?
Do you think that the Banks have YOUR best interest at heart?
And there is another side to it:
Almost all houses, that are priced under $50,000 need a lot of work; that $10,000 worth of work on a $50,000 house is 20% of the value. Whereas, that $10,000 on a $200,000 house is 5%!
I suggest you talk to a Realtor about your wants and needs. Maybe they can find a $60,000 house that doesn't need much work. Either that, or you shouldn't be buying for a while until you can afford the $60,000 house.
Good luck and may God bless
If you have sufficient income and verifiable credit history to justify a $40k mortgage, I would think your best bet is a credit union or small local bank.
Also if you have money in a 401K you may be able to pull money to buy the house. Contact your 401(k) Plan Administrator.
Lastly there are Hard Money Lenders (loan sharks) that may do the mortgage if you can find 50% to put down.
Even Warren says he would a a few 100 thousand homes if he could manage them.
Be aware, NOW IS THE TIME TO BUY is not synonymous with ALL ARE ABLE TO BUY.
For some banks the COST of granting a martage below $50,000 exceeds their profit profile. In essence, banks intend to make a profit and if your business doesn't smelll like profit, they don't want it. The attitude of the banks, however, does not mean REAL ESTATE is NOT the most secure place at this time, and in the foreseeeable future, to put your money.
Lets not overlook the reality that the cost incurred by a real estate professional to find a home at this price point for you to buy will wipe out any illusion of making a dime. You find yourself in a position where you are a cost center for everyone who works with you. It is important you understand this. There are many, many, many professionals who will work with you, but NOT if you are disrespecting their efforts. We real estate professionals understand this is the opportunity of a lifetime for many and will work tirelessly to make this a reality for folks just like you. There, however, are limits to our patience and willingness to spend our resources to achieve your dream.
Now, you have about 2 years to positoin yourself to purchase real estate at pennies on the dollar. Rather than allow the banks to create greater frustration for you, get a plan in place that will allow you to purchase. You should not need to finance through a big bank a mortgage of this small size.
Here's a biggy for you. Search the following words and phrases along with the word 'grant' and give those who appear in the results a call.
(Real estate, Zipcode grant), (mortgage real estate zip code grant) (first time homebuyer, zipcode) (first time homebuyer, zipcode, grant)
Visit the community website http://www.MyDunedin.com and read the artical on the front page regarding grants available for first time home buyers. Many of these also provide affordable housing grants. These are cumbersome money sources, but it makes 'NOW IS THE TIME TO BUY' a call you can respond to that will have great benefit to you and those important to you in the very near future. This choice has always been yours in regards to what you do next. I've provided you exceptional advise and resources, now it's up to you.
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
The facts are now is the time buy. Inventory is down near 30% in some areas while sales are up 10-18%. prices have stabilized and are now going up in some areas. It wont be lon that interest rates will strat to rise with inflation. Banks are loaning money and have loosened some guidelines. That sure makes now the time to buy.
I'm sorry you're having trouble finding a loan officer to assist you, but that doesn't change the fact that inventory is high, prices are low and interest rates are at an historic low.
NOWS THE TIME TO BUY, NOWS THE TIME TO BUY....WELL ONLY IF YOU'RE AN INVESTOR AND WANT TO ADD IT TO THE LIST OF HOMES YOU'VE ALREADY COLLECTED. Screw the average person, f 'em, the banks need money. But we'll advertise the BS.
If you are a first time homebuyer, you may be able to get up to $7,500 from the State of FL Bond program, see if your income, household size and 620 credit score will qualify you here:
Then select a lender on the list and see if they'll spend time doing a $50k mortgage.
All the best,