So a family member just inherited a house (My wifes grandmother inherited the grandmothers sisters house when she passed away) and she wants to sell it. My wife and I would like to buy it BUT she only wants around $50,000 for it. I am having problems finding anyone to finance it because of its low purchase price.
My mortgage broker says they only finance $50,000 loan min. with 20% down making a purchase price having to be around $67,000 since its an investment property.
I recently let some other properties go that I found on the MLS because of low purchase prices as well.
Am I better off trying local banks? i tried to get her to finance me with a balloon loan but she didnt sound interested. She wants her money all at once. What type of loan should I be asking for?
How much is the home worth?
Would she be willing to do seller financing? Give her a 20% down payment and carry the rest over 5yrs.
Otherwise, what is property worth? If it's worth $100k, then a bank will work with you regardless of what she wants to sell it for.
Some banks will write a conventional mortgage on sub 50k amounts. I know TD bank does as I used them for a deal in Jan 2014.
It is a standard mortgage, nothing odd about it.
Have you run comps for the property?
I heard some local banks will do loans for less than $50k but haven't found one yet.
House needs about $10,000 worth of work. Is a cookie cutter rancher style house around 900-1000 sq ft. Usually sell around $85-90 in the area after repair condition.
I wanted to rent out the house for around $850/mo and give her around $600/mo for payments. I wanted to do a balloon style loan maybe a % down and the $600/mo payments for like 3 years or so. The grandmother said she wanted all money up front but maybe if I wave $10k in front of her she will let me do payments. Maybe they think we wont make payments who knows. Id have a contract either way to protect myself and her interests.
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