Mortgages for $50K and under?

Question

Are there any lenders out there that will underwrite loans for properties under $50K?

I found a fixer at $15K that I am thinking about buying, but I am concerned about exit strategies...  ARV on the house is around $50K, but I'm wondering if potential buyers would even be able to get a mortgage for that amount...  It would also be a good little long-term rental, but I would need to cash out my private lender and would likely run into snags when attempting a cash out refi (obviously).

My understanding is that lenders typically have thresholds ($50K, 75K, 100K, etc.) that they will not normally go below.  This is a starter house, so my end buyer would likely be a first-time home buyer.  I'd like to get some thoughts/experiences on this.

Thanks in advance!

Owen Dashner · Answer

Thanks for the input guys.  I've been looking at some super cheap houses lately and have been concerned about end buyers being able to obtain financing.  Sounds like it's still possible.

Rich Schroeder · Answer

My local bank, just one block away, will do any size loan with no minimum. They don't send their notes to other banks.  i've been rubbing elbows with the VP there for about 8 months now. You have to build relationships!  I doubt that any national bank will lend without a minimum.

Thanks 
Rich

Mark Yuschak · Answer

My local lender said he's obligated to process mortgage apps for $20,000 and above.  Not doing so is discrimination.

Jason Trepins · Answer

I did get a Citi mortgage on a property for about 25K...but that was over a year ago and bank rules change every 24 hours it seems.

I'd be curious if anybody has some solid info on this subject also...