financing an under $40 k house - Posted by sandra musselwhite

Posted by Clair-MO on July 17, 2003 at 10:49:07:

Sandra, I don’t think you have a problem for financing if the tenant has good credit. Let him go to the bank and borrow the money but I will say if you don’t want any money out of the transaction why not sign the deed over to him? And he can get a new loan for the home, what do you think?

financing an under $40 k house - Posted by sandra musselwhite

Posted by sandra musselwhite on July 17, 2003 at 10:30:01:

i have “inherited” an under 40k house in the east end of newport news va and have excellent tenant who is a contractor and has fixed it up–he can qualify and has good credit and some cash-will come into more soon. basically i am willing to “give” him the house for what is owned on it and expenses of sale. problem is finding a lender who will finance the house as it will be under $35K. owner take back and land contract in the conventional sense is not a possibility as the former owner has to be paid off within 3 years from last may. i have some investing experience but seem to have a brain freeze on this. any suggestions?

Another opinion on financing under $40 k - Posted by KP

Posted by KP on July 17, 2003 at 22:42:59:

I have found it extememly difficult to find anyone to do this size loans. With all the re-fi’ing going on the lenders don’t need to make these types of loans. Many have told me just that. I know a broker who is a wizard at what he does and says that he used to be able to get a dozen lenders to do these loans. Now he says they don’t even sonsider anything under $50k.
Sorry to put a damper on things but I have spent a LOT of time trying to find this type of financing. It very well may be, and I hope for your sake it is, that the problems I am having is that I am trying to make it happen in Baltimore, MD. (Goodness know that we have our own unique problems here.) A local bank may be your best bet.

Great Luck,

Re: financing an under $40 k house - Posted by James Strange

Posted by James Strange on July 17, 2003 at 12:13:27:

Local bank.

Re: financing an under $40 k house - Posted by Kristine-CA

Posted by Kristine-CA on July 17, 2003 at 10:57:05:

Sandra: your tenant’s own bank or credit union shouldn’t have a problem giving him a loan if his credit and income are good.

Also, Countrywide and Washington Mutual (and other subprime lenders) make all kinds of acquisition and re-finance loans for low values.

Sincerely, Kristine