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Naymara, Home Buyer in Sarasota, FL

Do the houses that are 20,000 dollars or less have to be paid cash?

Asked by Naymara, Sarasota, FL Fri Jun 20, 2008

I just need to know what's the limit when financing a house?

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4
it depends on the condition i had to pay 34000 and then 2 months to bring up to code witch was another 6500
0 votes Thank Flag Link Thu Aug 21, 2008
Naymara,

As previously stated, generally, Yes. Lending institutions establish a minimum loan amount.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Sun Jun 22, 2008
Usually, the bottom limit on a conventional loan is $50,000, though it depends on the lender. And I imagine that if you have a really good relationship with a local bank, you'd be able to persuade them to provide a loan for less.

However, just because you can't get a traditional loan doesn't mean that the property has to be paid for in cash. Or at least not your cash.

As Mott says, a HELOC or other line of credit will work just fine. I've heard of people getting loans for other purposes (such as a vacation), and then using it for something else. Just be sure you're not deceiving the lender.

Depending on who owns the property, you can also attempt to get owner financing. Let the owner act as the bank. You figure out the payments and length of time, or payments and interest rate, or any other variation, run it through a calculator, and you just do the paperwork with the seller and make your payments directly to him/her.

If you're short on cash and there's a profit potential, find an investor to contribute part or all of the purchase price in return for a share of the profits.

Hope that helps.
0 votes Thank Flag Link Fri Jun 20, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Usually they do. Most lenders have a minimun loan amount of $50K and a square footage minimum requirement. A HELOC or PL may work. Lenders and banks are (were) always coming up with new and "improved" products to meet the needs of borrowers. I've seen minimum loan amounts as low as $25K...
0 votes Thank Flag Link Fri Jun 20, 2008
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