Low Mortgage Amount

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DetroitInvestor

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Post Posted: Wed May 13, 2009 9:34 am    Post subject: Low Mortgage Amount
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I am looking in Detroit. There are great houses in great areas for only $20k. I would like to make my money stretch as far as possible. Where do I find a bank willing to loan only $20k on a mortgage?
DetroitInvestor

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Post Posted: Wed May 13, 2009 9:36 am    Post subject: Low Mortgage Amount
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Or, is there a bank willing to loan to make a bulk purchase of several homes?
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Post Posted: Wed May 13, 2009 9:13 pm    Post subject:
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I think you may be better off gettign a personal loan to buy this 20K house.

Probably you can pay it off quicker than a mortage. But I do nto think any lender out there who will do a home loan for 20K.

The reason being the cost associated in generating a loan and the paper work around it.
Icon Mini Profile adonis
adonis




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Post Posted: Wed May 13, 2009 11:21 pm    Post subject:
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Hi Guest,

Lenders would prefer if you can give a 20% down in order to get a mortgage. If you cannot give 20% down, you will have to go for a private mortgage insurance. I don't think any lender would come forward to give you a loan of full $20K.

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Icon Mini Profile Realgeni





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Post Posted: Thu May 14, 2009 10:27 am    Post subject:
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Adonis I do no think that any lenders would give a mortgage loan for 20K.

As I said above the cost assocaited with financing is too high and the rewards ae too low for them.
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Post Posted: Wed May 20, 2009 2:27 am    Post subject:
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Apart from personal loan there is one more lucrative option for this problem that is loan against property ( i have assumed that his/her parents have some immovable property)

As loan against property is the safest option for the lender as it is secured debt against personal loan which is most of the time termed as unsecured loan and thus charged high interest rates.

keep in touch!!!


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Icon Mini Profile haridas_badhe





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Post Posted: Wed May 20, 2009 6:18 am    Post subject:
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You can get Loan against property so don't go to personal loan it's interest rate is high.And Loan against property is more secure.
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