Low mortage loan? $12000

[Anonymous]

I found a fixer-upper for sale at $12000. It's not that bad, only needs carpet, painted, and a few updates. I applied for a mortgage in October, and got denied due to low credit score. Anyway, I was talking to the LO, and he said most banks wont finance a home under $40,000. is this true? and would it be possible to finance a $12000 mortgage? I have about $5000 coming to me from taxes next week, I was just wondering about the financing. I was thinking a personal loan maybe? Since its so small. I dunno. What are my options? And, which would be the best with a low credit score? (580ish)

ps. the past few months I've been PFD and GW baddies on my credit, so my score should be up as soon as these items get deleted.

[Anonymous]

If you belong to a credit union I would start with them.  Do you know how much it would appraise for? If it is true that banks will not finance that small of a loan I could understand, with all the work they would need to put in processing the loan the payback would be horrible on a loan of that size.  You may want to sell some assests or find someone to personally finance the loan.  Either way good luck...

[Watchmann]

The LO was right, banks won't do a mortgage loan for this low an amount, it's just not profitable for them.  Your best bet is to cobble together some kind of personal loan to pay for it.  Talk to your credit union and see if they will give you an unsecured personal loan for the amount.

[Anonymous]

I'm not sure how much it would appraise for. I just found it today, and I thought.. what the hell, might as well see if I could get some info on this idea. I might be able to get my dad to help with the financing, and take out a personal loan in the future to pay him back. I guess we'll see. I'm looking at the house on Saturday. I'm psyched!

[Anonymous]

I'm also not a member of a credit union.

[StartingOver10]

Most lenders have a floor.

WAMU used to do the real low $$ amounts - so maybe Chase does them, but I doubt it.

You can use hard money for a loan like that...but its high interest rate and generally a very short term - 3 yrs or less is typical.

Look to private investors to see if they will do a loan like that - be careful. There are lots of scammers that advertise the private investment route. You have to know what to look for in order to not get scammed.

[spooks69]

aimloan.com will do a loan down to $10k, and run it FHA.  But the fees might eat up your $5000 in cash.....

Find a realtor and offer the $5k in cash.  You might be surprised.

[Anonymous]

Maybe I'll just bring a breifcase full of $5000 cash and see if they want it. Maybe if they see it, they might take it for the house. lol. jk. I'm not stupid enough to walk around with 5k on me. I'll see what happens this weekend when I look at it. I'll let everyone know what happens.

[Anonymous]

I kind of had an idea, but not too sure yet. I could borrow $12000 from my dad for the house. Than when my credit gets to where it needs to be, I could get a Home Equity Loan and pay him back and perform updates on the house.. hmmm. i dunno.