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40 year mortgage? Lenders for mortgage under 50k?

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Regular Contributor

40 year mortgage? Lenders for mortgage under 50k?

Anyone know any places that do 40-year mortgages? Or that wil finance a home under 50K? Im in MI

Message 1 of 9
8 REPLIES 8
Valued Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

There are lenders and investors who will issue you a 50K mortgage note.

 

But I wouldn't count on a 40 year note.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 9
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Regular Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

Dang, well, my income is low for a 50K note.. I know chase bank will lend a minimum of 50k, maybe they can do a 40 year loan, they just wont do a 40 yr fha.

Message 3 of 9
Valued Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

What is your income? Do you have any money saved for down payment, closing cost? Are you employed? Are you on diability, or social security, or something of that nature?

 

If you give more information, maybe we can all be a little more helpful to you.

Good Luck
May all your dreams and wishes become a reality!
Message 4 of 9
Regular Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

I'm only making 10900 a yr right now. I'm employed 6 years w2 but I had a baby so I dropped to part time. No other debt and 10k to put down and possible more as my dad may gift me some.

Message 5 of 9
Regular Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

Oh and my middle score is now 649.

Message 6 of 9
Valued Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

Okay now I can see why you want to try for a 40 year loan. Congrats on the baby.

 

You would probably qualify for a 40 year mortgage, depending on other factors. Your credit scores may have to be little higher also, but they will be lender specific. Most likely you will need a FICO 660 mid score, but as I stated it is lender specific.

 

When you get a chance go talk to a LO or Broker and see what they suggest and can offer.

 

Just keep in mind that most 40 year loans come with higher interest rates and the savings in payment comparable to a 30 year mortgage is very minimal and sometimes actually cost more.

 

Based on borrowing 40K using your 10K for down paymnent.

 

5% at 40 years will cost about 193.00 a month and thats just Principle and Interest... cost 13.00 more per month and additional 10 years

4% at 40 years will cost about 168.00 a month and thats just Principal and Interest... saves 12.00 a month but still additional 10 years

3.5% at 30 years will cost about 180.00 a month and thats just Principal and Interest... 30 year cost with approximate interest rate

 

Now on top of this you have to add home owners insurance and taxes which is based on the state and county you live in.

 

Just a general idea so you can figure out your budget and see if its still something you want to persue.

 

 

 

Good Luck
May all your dreams and wishes become a reality!
Message 7 of 9
Valued Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?


@Target1212 wrote:

Anyone know any places that do 40-year mortgages? Or that wil finance a home under 50K? Im in MI


@THE problem with a 40 year mortgage is you are going to pay like 130k for a 50k home when its all said and done with around a 3.5 rate....that is if you can find someone who will do a 50k @40 years....have you tried looking into programs for low income earners?? or even like a down payment grant... if you did that you could get a a mortgage and pay it off in no time..(as opposed to 40 years)

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Message 8 of 9
Regular Contributor

Re: 40 year mortgage? Lenders for mortgage under 50k?

Oh there's no way I would take the whole 40 years to pay off 50k! I would probably double my payments and in reality pay it in less than 20 if I found someone who can let me! It's just hard because I don't qualify due to income. I may up my hours for a couple months my LO says they'll look at 2 months in checks. I could go up to say 12500 a year. There are houses around here that are selling for 40-50k I would be happy with, but no where is allowing me to borrow less than 50K, which sucks. I'm not looking to buy for another 3-5 months, so there's room for my credit to improve (as I'm working on, 649 now but myFICO simulator is saying it should be 680 by then) I'm just trying to figure out what next.

Message 9 of 9
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