Getting a Mortgage Under $50,000

[Gary Kuang]

Hello Everyone,

I'm currently looking to buy rental property up in Buffalo.  Currently, the houses I've been looking at are $50,000 or less.  I have enough money for the down payment, but I have heard that a lot of the bigger banks don't offer mortgage loans for anything below $50,000.  I am planning to start my search soon, but was wondering what are my other options if I am unable to get a loan from these financial institutions.

Thank you in advance for all of your help!

[Joshua D.]

@Gary Kuang

We the good news is that there are other options. But as far as I know none of the terms on the other options will be as good as the "conventional" loan you could get from a big bank.

Here are some options: 

Hard money: think expensive

Private money: friends and family also

Portfolio loans from small regional banks

Commercial loans from banks

Save up and pay cash

Might even use a credit card on a $5000 house

Collateralize something that you own