Will a Lender loan on a 20,000 dollar property?

8 Replies

Is there any appreciation that can be expected? Is the ARV 20K? If so, most likely your only option is a personal loan which will be in the 9%+ range and <10 years.

If ARV is something like 60ish K, you could buy on a personal loan, then refi out of it into a traditional mortgage.

Some banks will do <50K loans, but they're few and far between and 20K is probably too low for those banks as well.  You might be able to qualify and get into something with P2P lending, but again, the repayment terms are going to be much shorter than 30 years.

20k is probably too low but I just completed a 28k mortgage on a property I was buying for 35k (and is worth 40).

My interest rate is 5 percent and they waived the lender fees, so I paid zero lender closing costs.

So it’s definitely possible. This is large bank not local.