I have heard that it is hard to get loans for under $50k. I have a seller (FSBO) and a qualified buyer. The seller is asking $43k, and the house was appraised at $61 two years ago, the buyer is willing to pay up to $70k.
I would really really appreciate a referral.
Thank you
FHA and some ALT A lenders will allow for a sales price of 40K. Some subprime lenders use to go to 40K as well, but I think we all know how that is going right now. Is your buyer looking for 100% Financing? If so, you may have them roll in some closing costs as this will increase your loan amount.
I think the better way to do it would be to do a “subject to:” and have the buyer do traditional financing.
The last property I bought was for $28,000. I did seller financing over 5 years at 8%. Another option for your buyer and seller.
You can structure the loan over 5 years paid off in full or you can have it financed over whatever time period and have a 1 year balloon payment. That way the seller will get all their money in a year, and the buyer can refy at $50,000 and pull a little money out in the refy. Win, Win.
Traditional mortgages under $50K are difficult to get.
She said the buyer is willing to pay $70,000. Blondie’s loan would be under $50K.
Why do you need a loan? Can’t you just do a double closing and collect the difference?? :cool
Blondie:
Did you find out if seller will agree to remain on loan? Than as was stated above, purchase as subject-to.
BTW did you receive my message?
Ed Bisquera