How possible would it be to finance a rather cheap house?
Ok, this is starting to get rather confusing. I am looking to buy a home in a surprisingly cheap neighborhood. The house I am interested in purchasing is under $50,000. My credit qualifies me for a bad credit loan, but no one wants to finance for such a small amount. I am definately trying to live within my means and do not necessarily want to purchase a higher value home just because I can. Does anyone have any idea where I can finance such a house even though my credit is tarnished (but getting fixed due to multiple discrepencies)? I know there are different requirements depending on the state. My state is PA, and I am first time homebuyer.
Tags: cheap, finance, house, possible, rather, would
3 Comments
yes of course there’s a way! it sounds as if the banks/mortgage companies you are contacting just are not the right ones. If you have blemished credit there are still tons of places out there willing to lend you the money- some may want a down payment or minimal downpayment – but there are sometimes ways to work around that, you just need to get a hold of the right people. It makes no sense at all that they would be willing to lend you more – but not less. So that leads me to believe that possibly this home you want to buy needs work? if that’s the case then you may have better luck looking either towards a government loan such as 203k if you qualify, and if not maybe towards a investor loan (hint google search hard money in your area). from my experiences none of these places have a minimum they will lend- but some of it depends on the home. If your credit is that bad- you may need a small down payment. If in a couple of months you have exhausted your resources – then maybe you should work on getting your credit repaired.!
The main ways are
1) seller financing
2) hud financing, government inst. help with first time home buyers
3) ask family and friends if they are willing to loan you the money
Bank-owned homes are the easiest way for an investor to grab a great real estate bargain. Most banks are pricing their San Diego foreclosures at least 20% below the “market value” of non-distressed properties. There is a lot of competition, so it pays to be first and to have all of your ducks in a row