Getting a Loan for a Rental at 50,000 and Below
I found a Single family house I want to purchase. I am in Columbus Ohio and I want to purchase to rent it out. Has anyone run into getting financing for properties under 50,000. I must put 15% down which takes the loan to low to get a 30 year mortgage. Am I missing something here? Is this a Federal guidline or is this Specific to the lender I am trying to use.
Good morning! $35k is the minimum. The reason is because closing costs are not(by law) allowed to exceed a certain percentage, and under $35k it automatically does, because most banks closing costs are set. Usually $2,800-$3,300, then you add the prepaid items such as insurance, taxes, etc..
I can give you the names of two lenders that can do the loan. If you need them, just PM me.
Good luck!
Originally posted by @Deanna Graham:
I found a Single family house I want to purchase. I am in Columbus Ohio and I want to purchase to rent it out. Has anyone run into getting financing for properties under 50,000. I must put 15% down which takes the loan to low to get a 30 year mortgage. Am I missing something here? Is this a Federal guidline or is this Specific to the lender I am trying to use.
I was going to do a deal on a property below $50k but it didn't work out. Look up Jerry Padilla
Joe Sauk at Arlington bank has done 2 houses for me under 50k. He does require 25% down though.
Brad what kind of interest rate are you getting?
I'm also in the market for a rental that is for sale for 48k, but it's worth 80k located in Texas. Does anyone else have any contact info on banks / credit unions that that would be able to make that loan?
Thank you,