Property Q&A in Baltimore>Question Details

Erica, Home Buyer in Baltimore, MD

Where would I possibly find a lender to give a mortgage for 20000?

Asked by Erica, Baltimore, MD Fri Dec 19, 2008

It seems as though the rehab of Baltimore is stuck in a bind. Those that can pay up in full are the only ones it would be easy for. But its pretty obvious that there are not many of those that can in this city, so where does the future of the city lie? Are the working citizens that save up for a mortgage get turned down only because its not enough for a bank to deal with? There must be some kind of institution that assist people in these home loans listed under $50000. For people that have some knowledge in fixing walls and floors and would appreciate the architecture of the city, there should be an easier way for us.
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Thanks for all your feedback, its helpful and I'll look more into rehab loans. The only problem I found with that is that they give you more money to fix the house, then they appraise the house and charge you for what its worth. Putting your own work into the house to make it livibale, and they charge for the work you've done on your own. I could pay back what they loan me but as far as I understand, it doesnt seem completely fair... the house could be worth way more than what you where loaned. I work for MECU as a representative, they work like a typical bank. No FHA mortgage for under 50000, and the house must be in good condition. Their policy is alot more strict than people think nowadays.
0 votes Thank Flag Link Tue Dec 23, 2008
Hi, Erica. You have a very real concern. Speak to at least 3-4 different lenders. I would also try some local credit unions (MECU - Municipal Employees Credit Union - is Baltimore City based). (Please note - I do NOT have any financial interest in giving them business as a Realtor). Depending on if you are a city employee or city/state government employee you may also be eligible for some programs the City & State have offered / are offering (you always have to double check what funding is still available when you are ready to actually get a loan) - like the Live Where You Work Program or House Keys program; or you may be eligible for loans specifically designed for rehab construction - depending on home/location/need, etc. If you would like more help, please feel free to contact me at or my info can be found at (I and my co-workers do work in Baltimore City). Good Luck on your endeavor!
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0 votes Thank Flag Link Sat Dec 20, 2008
Hi Erica, there are some lenders that loan small amount.s You might want to check with your agent to see if they know anyone that does private lending. Also there are renovation loans that work for these types of properties.
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0 votes Thank Flag Link Fri Dec 19, 2008
Hi, Erica,
I am working with a client right now with the same situation like yours. He is interested in buying a foreclosure that needs repair which lists for $15,000. We talked to the lender, the best way to do is getting a investment loan, which interest rate is higher. Live there for about an year, do the repairs and make it to good living condition, then get refinance for regular mortgage loan.

Talk to a good lender, they will explain the reasons to you why these houses can't get regular mortgage finance. I am not an expert in mortgage, but I want to share the story with you what your option can be.
0 votes Thank Flag Link Fri Dec 19, 2008
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