I was told that low price houses don't offer loans anymore you have to pay cash for the houses. Let's just say 20,000-40,000.

Asked by Keneisha Richards, Crete, IL Sun Oct 20, 2013

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6
Amy Atkinson, Agent, Riverton, UT
Mon Oct 21, 2013
Also, check your local bank or credit union, I have found they are easier to work with for this amount.
0 votes
Bob Brandt, Agent, Schaumburg, IL
Mon Oct 21, 2013
Ask your Realtor if their favorite loan officer can do it.
0 votes
Simon Campbe…, Agent, Miami Beach, FL
Sun Oct 20, 2013
If the loan will be sold to the secondary mortgage market, Fannie Mae and Freddie Mac have a $50k lending requirement. If you are looking to remodel the property, consider a FHA 203(k) or a HomePath loan which can wrap the two into one loan.

Another option is to look for a lender or credit union that will hold the loan in house. Or you can get a personal loan. Or you can get a HELOC off your personal home. Or you can borrow from your retirement account. Or you can buy on land contract. Or you can max out a credit card for a fix and flip deal.
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Sun Oct 20, 2013
Typically lenders will not loan lower than 50k because of lending fee ratios in Illinois. However, there are some banks that do not have these limits. Community banks may be a good idea. Also, I have heard Wells Fargo will loan any amount.
0 votes
Laurie Chris…, Agent, Oak Park, IL
Sun Oct 20, 2013
From my understanding, the closing costs end up being too high a percentage of the purchase price since many of those costs are fixed (the same regardless of purchase price). The banks can't do the loans if closing costs exceed a certain percentage. You may have better luck with a credit union or another atypical lending source. Best of luck!
0 votes
Amanda Chris…, Agent, Fort Wayne, IN
Sun Oct 20, 2013
It's tough to get loans for that low amount. Investors don't want to take the risk.
0 votes
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