Who will loan money to families that lost their home or job for these low price homes under 20,000?

Asked by Michael Duncan, Florida Wed Mar 4, 2009

There are hundreds of homes on the internet under 20,000. But when you try to get a loan no one will talk to you, they say you must borrow 50,000 to buy a home or pay cash. Seems only investors can profit off those that made mistakes when getting loans to have a home of their own. Many people are calling them bad people for wanting some place to call their own. Now with prices down thay can't even buy now. Loan the money to lower income people and stop the bail out. Give everyone a chance to own their own home. I need a home for my wife and I , we live with my mother and I am 54 laid off from Ford in 2005, we lost our home and savings. I work, I pay my bills. Give me a chance to have a home of my own, even a cheap fixer upper can be made a home. I don't want a handout, I want a loan.

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Brenda W. St…, , Keystone Heights, FL
Wed May 6, 2009

If someone tells you no... don't give up! The laws and loan programs are different in Florida than they are in California as well as they are different from county to county. Call an agent, if they can't help you, call another and another. Be assured, from your question here, no one has enough details of your situation to tell you that you won't qualify for a loan or assitance of some kind. There are many types of loans USDA (for rural areas) is the first one that comes to mind, they don't neccessarily look at bad credit over a year old and they will help you fix your credit. Many will say they aren't loaning right now... not true, I just closed one in Feb.

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Grace Hanamo…, Agent, Cupertino, CA
Tue May 5, 2009
Hello Michael and thanks for your post.

Unfortunately, the abuses of others--from the lenders to the borrowers--have firmly (re)established the lending practices that were in place over 15 years ago in which individuals only qualified for loans when they could prove through filed taxes and other financial documents that they made enough money to cover the loan payments. While I ceratinly believe you are sincere in your statement that you would pay for your loan, the truth is that in order to qualify for most government guaranteed loan programs and insurance, a lender can only lend to those individuals who qualify based on the seller/service guidelines put in place by these guarantors. Having any credit defaults in your recent past as well as unemployment or lack of steady pay will, as you know, make you ineligible for most loan progrms at this time.

However, even the worst credit blemish such as foreclosure and short sale will have a far less impact on your loan abilities in a few years. If you keep your debt low, pay bills on time, and, most importantly, establish a solid savings routine, you should be able to get another property in a few years.

If you are truly willing to work for a home, I would suggest talking with your local chapter or Habitat for Humanity to see if you might qualify for any assistance programs available through their organization or if they know of any other assistance programs that might help you.

Good luck!!

Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
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Brenda W. St…, , Keystone Heights, FL
Tue May 5, 2009
It really is true that the best person to help you will be a Real Estate Professional. It is also true that many may brush you off because of your budget. I believe it's possible, but I also believe it will take some time to find an agent. I wish you all the luck in the World!

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Penny Boyles, , King, NC
Wed Mar 4, 2009
Some investors are offering owner financing. If you are working, there may be a local bank that will offer some financing. One problem with the lower priced $20,000 properties etc, is that they need so much work.

Look around your area for an agent that has a lot of foreclosures listed or an agent that advertises they work with foreclosures. Build a repore with those agents and they might be able to connect you with an investor who will hold the financing until you can get your credit back in order.
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