my understanding is that $50,000 is the least amount of money you can obtain a loan for. Meaning if you are buying a house for less than $50,000 then you need to pay cash. Also, you can't go out and get a loan on a house that is listed for $42,000 or a contracted for sale at $42,000, these are not the glory days anymore. nope now we are all stuck with reality. Best of luck to you, if you do find a lender that is willing to give you $42,000 be careful they are not giving you an interest rate of 12% or higher. Good luck on your purchase.