Has anyone ever gotten a mortgage loan under 50K?

debian0001

Senior member
Jun 8, 2012
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I found some decent under under 70K houses that I am interested in. I have about 30K saved and I don't want to rent anymore.

Is it feasible to get a loan for this much? I have good credit.
 

Destiny

Platinum Member
Jul 6, 2010
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I found some decent under under 70K houses that I am interested in. I have about 30K saved and I don't want to rent anymore.

Is it feasible to get a loan for this much? I have good credit.
Yes... get it for 15 years or less if you can afford the monthly payment...
 

alkemyst

No Lifer
Feb 13, 2001
83,981
13
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In all reality a 15 year mortgage doesn't make sense on that principal especially.

Get a 30 year, make the 15 year payment. That one or two months you have issues, go back to the 30 year payment...or if your bank allows it let it ride.

When 15 and 30 year terms are so close, it makes no sense to not pick the 30.
 

Destiny

Platinum Member
Jul 6, 2010
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In all reality a 15 year mortgage doesn't make sense on that principal especially.

Get a 30 year, make the 15 year payment. That one or two months you have issues, go back to the 30 year payment...or if your bank allows it let it ride.

When 15 and 30 year terms are so close, it makes no sense to not pick the 30.
Not really.. if you factor in Amortization (which is applied to all installment mortgage loans), you will be paying alot more interest in dollars with the 30 year mortgage even if you pay it off in 15 years... a 50k loan, his monthly payment should be cheaper than most people's rent...
 
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Slew Foot

Lifer
Sep 22, 2005
12,387
93
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LOL at 70k house. I think I spent more on my kitchen.


and yeah, if houses in your hood are goin for 70k, a local bank should be able to hook you up nicely
 

ShawnD1

Lifer
May 24, 2003
15,999
0
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LOL at 70k house. I think I spent more on my kitchen.


and yeah, if houses in your hood are goin for 70k, a local bank should be able to hook you up nicely
Maybe it was previously owned by meth heads and they need the money REAL BAD BRO
 
Oct 19, 2000
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LOL at 70k house. I think I spent more on my kitchen.
:rolleyes: Not every part of the country is insanely overpriced with everything. You spent almost as much on your kitchen than I did on my house, yet there's nothing you can do in your kitchen that I can't do in mine.
 

alkemyst

No Lifer
Feb 13, 2001
83,981
13
81
Not really.. if you factor in Amortization (which is applied to all installment mortgage loans), you will be paying alot more interest in dollars with the 30 year mortgage even if you pay it off in 15 years... a 50k loan, his monthly payment should be cheaper than most people's rent...
'a lot more?'

you can't be serious.
 

yh125d

Diamond Member
Dec 23, 2006
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pay only 20% so you don't pay PMI or nothing if you can get a no PMI 100% financing like me and dump the rest into a 401k/upgrades on the house/move-in cash.


No reason to take such a hefty cash savings and trade it all for non-liquid equity when interest rates are this low
 

Bignate603

Lifer
Sep 5, 2000
13,900
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pay only 20% so you don't pay PMI or nothing if you can get a no PMI 100% financing like me and dump the rest into a 401k/upgrades on the house/move-in cash.


No reason to take such a hefty cash savings and trade it all for non-liquid equity when interest rates are this low
Exactly. You'll do far better in the long run by putting your money into a tax advantaged retirement account than you will by putting down more on the house.

I just closed on my new house today. Buying right now is like winning the real estate lottery, prices are low and interest rates are amazing.
 

debian0001

Senior member
Jun 8, 2012
460
0
76
So if I find a house for 68K, should I shoot for a loan for 68K, or higher etc..? Can I get a preapproved loan for 80K, but only use 68K etc....
 

alkemyst

No Lifer
Feb 13, 2001
83,981
13
81
Yes, but they will only lend what the house you decide on is worth. You can get preapproved for $80k and then get a $50k home expecting $30k in cash in your hands.
 

dud

Diamond Member
Feb 18, 2001
7,610
70
91
In all reality a 15 year mortgage doesn't make sense on that principal especially.

Get a 30 year, make the 15 year payment. That one or two months you have issues, go back to the 30 year payment...or if your bank allows it let it ride.

When 15 and 30 year terms are so close, it makes no sense to not pick the 30.



The 30 year mortgage give you the FLEXIBILITY to pay the mortgage off at the 30 year rate ... or as fast as you wish to ... to save interest payments.

OP, yes, it is possible to get a mortgage for less than $50K ... my parents bought their first house in 1966 for $15K. Their mortgage was slightly less than this (humor intended).
 

Red Squirrel

No Lifer
May 24, 2003
52,308
6,725
126
www.uovalor.com
Given it's so cheap what I would do is get a higher mortgage and use some of the extra money for renovations right off the bat. At least the major stuff like bathroom, floors etc that is easier to do when you're not living there. That and you'll instantly increase the value by doing that.
 

Bignate603

Lifer
Sep 5, 2000
13,900
1
0
Given it's so cheap what I would do is get a higher mortgage and use some of the extra money for renovations right off the bat. At least the major stuff like bathroom, floors etc that is easier to do when you're not living there. That and you'll instantly increase the value by doing that.
Getting a loan with money for renovations isn't necessarily as easy as getting a standard loan just for the cost of the house. It's possible but it's riskier to the bank. What if you don't do the renovations, you do a lousy job and waste the money, or the renovations don't increase the value of the house enough to cover the full loan? Higher risk to the bank = more difficult to get loan and higher cost.

The argument of "increasing value" is debatable. Generally the value of the house goes up but typically it doesn't go up as much as you spend on it.
 

Arkitech

Diamond Member
Apr 13, 2000
8,357
3
76
:rolleyes: Not every part of the country is insanely overpriced with everything. You spent almost as much on your kitchen than I did on my house, yet there's nothing you can do in your kitchen that I can't do in mine.
What if he cooks meth in his kitchen? Can you cook meth in youur kitchen? canya?
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
98,387
1,379
126
Getting a loan with money for renovations isn't necessarily as easy as getting a standard loan just for the cost of the house. It's possible but it's riskier to the bank. What if you don't do the renovations, you do a lousy job and waste the money, or the renovations don't increase the value of the house enough to cover the full loan? Higher risk to the bank = more difficult to get loan and higher cost.

The argument of "increasing value" is debatable. Generally the value of the house goes up but typically it doesn't go up as much as you spend on it.
i think he meant take out more (go right up to the 80% line) and use the leftover cash from not putting it all down to do some renovations.
 

Bignate603

Lifer
Sep 5, 2000
13,900
1
0
i think he meant take out more (go right up to the 80% line) and use the leftover cash from not putting it all down to do some renovations.
That would make more sense. With the rates you can get right now I'd only put down enough to get out of PMI anyways, though the OP has said he can use a VA loan to avoid that. There are so many other things you can do right now that will net you more in the long run.
 

Rage187

Lifer
Dec 30, 2000
14,276
2
81
I think our first house was $35k. My payment then was significantly cheaper than my current car payment.
 

Rage187

Lifer
Dec 30, 2000
14,276
2
81
damn you sold cheap in the boom.
That was actually the record price for one of those units. The bubble burst the next year and they dropped to the low 50s. Of course, our current home lost 30% since then as well.
 

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