Home Buying in Dallas>Question Details

Ibrahim, Home Buyer in Dallas, TX

If you are buying an investment or second home that requires 15-20% down and the property is 50-60k, how can it be financed through a bank if the

Asked by Ibrahim, Dallas, TX Tue Apr 9, 2013

loan amount reaches under 50k?

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I'm tracking on all of this. I'm seeing a few houses that I'd be interested in that range but once the 20% down is applied, the loan is below 50k. I'm not looking for a rehab loan, all cosmetic updates that I'll do on my own.
0 votes Thank Flag Link Thu Apr 11, 2013
@Bruce Lynn - It would depend on what the fix ups entailed. If the loan was for $50k or more you could do an FHA Rehab loan. These are called FHA 203k and FHA 203k-Streamline. The Streamlined version is for more cosmetic things like new cabinets, and the straight FHA 203k is for more major things that would involve structural items, too. You can also do an FHA Energy Efficient Mortgage if you do a loan for $50k+. Please call me to discuss either of these typs of loans 972-854-3270.
0 votes Thank Flag Link Wed Apr 10, 2013
Hi Ibrahim,

It will be hard with major banks to get a loan below 50k. You will have to look for smaller banks or credit union.

0 votes Thank Flag Link Wed Apr 10, 2013
Can you do any fix up and get a rehab loan? Would it make sense to do any updates and upgrades and still have value in the property?
0 votes Thank Flag Link Tue Apr 9, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
20-25% down and going to do some digging to get a loan that low. May have to be creative
0 votes Thank Flag Link Tue Apr 9, 2013
It might be difficult, however contact any lender of your choice and get real answers.
0 votes Thank Flag Link Tue Apr 9, 2013
You could do a loan for $50,000 on a property for $55,000 if you just put less money down. No one but your local smalltown banks will touch a loan under $50,000. Please call me to talk about how you can restructure this one through since putting less money down but doing it on a 15, 20, or even 30 year note that will get you a better interest rate and a better deal. My cell is 972-854-3270.
0 votes Thank Flag Link Tue Apr 9, 2013
The only loans available for that size loan would be with a loan bank that you have a relationship with. It would have a 3 - 5 year call.
Jim Fleischman 214-457-8496
0 votes Thank Flag Link Tue Apr 9, 2013
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