How to get a small loan for a first time buy?

1 Reply

I am very new to this site, as well as the industry. I have been reading a lot of the different discussions and now have a few more questions. It seems the general consensus is to start small for a first purchase; however, I have also read/found that getting a loan is very difficult for loans under $50k-$60k. 

Now, I have heard many people suggest finding money from private lenders, but I really don't want to go this route for my first purchase if at all possible. 

So, I have found several foreclosures in the $30k range...some need a lot of work, but I have actually found a couple that "sound" like they are in good shape. No, I am not naive, I know there are always hidden costs to consider, but I am not even to that step yet. Honestly, I am not looking to just jump at the first option either; I am merely trying to go through all the proper steps, so when I am ready to buy, I feel better prepared. I don't want to jump, but I don't want to keep dragging my feet waiting for that picture perfect deal either.  

For arguments sake, lets assume the houses are good deals. Let's also assume that I have the money to buy one of the house outright (which I do, but would rather not go that route). With these assumptions (yes, I know what assumptions lead too lol), what is my best plan of action to get a loan?

find a lender who will do smaller loans but be prepared to pay higher then average closing cost for it.

you can also do a cash put refi if you have the right lender who doesnt have to require any seasoning.

Curt Davis, Real Estate Agent in TN (#00321765)

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