Found the perfect property for me! But need advice

[ryanmercer]

I found 7.45 acres, with a pole barn and a 1500sqft modular home on it. Perfect for one guy... Only problem is I don't have the 28k$ cash to buy it, and I looked around today and can't find anyone right now that'll do a mortgage smaller than 100k$. Anyone know of any banks that do mortgages that small.

Normally i know banks won't do under 50,000... but all of them told me today almost the exact same line 'due to market conditions we are not financing less than 100k$ at this time'

[DonnaKay]

Don't know if this would work for you but we recently needed some cash and the quickest, easiest, cheapest (lowest interest rate) way to do it was to take a loan out against our truck which we owned out right.

There are also personal (signature) loans. I know you are on the young side and banks might not be willing to give you that type of money with no collateral.

Have you looked into other non mortgage loan options?? If it is that difficult for you to get financing on this amount it's probably just as difficult for the other folks that may be interested.....perhaps the owner would do a rent-to-own deal??

Good luck,
Donna

[ryanmercer]

Don't know if this would work for you but we recently needed some cash and the quickest, easiest, cheapest (lowest interest rate) way to do it was to take a loan out against our truck which we owned out right.

There are also personal (signature) loans. I know you are on the young side and banks might not be willing to give you that type of money with no collateral.

Have you looked into other non mortgage loan options?? If it is that difficult for you to get financing on this amount it's probably just as difficult for the other folks that may be interested.....perhaps the owner would do a rent-to-own deal??

Good luck,
Donna

There is no way I can get a personal loan for nearly 30k$. And my truck may be a 30k$ truck (brand new), but it is 14 years old so I'm gonna maybe be able to borrow 25 cents against it.

[rich554]

You'll need to have some kind of a down payment to show the seller and/or bank your interested. You could see if the seller is willing to do the financing and sign a note to you. Basically the note would be written like a bank note and you would have to repay the seller instead.

If you are going to buy this place make sure you have a solid financial plan. Granted we all want to live off the grid but if we don't have a work able plan we end up with bigger problems.

[Deberosa]

Find a realtor who will work with you on this. I know my friend who is a realtor specializes in digging out loan sources for people at the "low" end of the market. He likes getting people into their first place. Unfortunately he's no where near you...

When I was working with him I was looking at the "odd" places that no one wants to finance such as acreage with old single wides, etc. and he had a whole portfolio of sources. There are banks out there that will do that, you just need help finding one. If you aren't using a realtor sometimes they will work with you on a private sale as your agent for a fee - sounds like it would be well worth it if they could get you into a place like that!

The other source is a credit union, if you become a member they give you alot less grief on getting the "odd" kinds of loans.

Good luck!

[ryanmercer]

You'll need to have some kind of a down payment to show the seller and/or bank your interested. You could see if the seller is willing to do the financing and sign a note to you. Basically the note would be written like a bank note and you would have to repay the seller instead.

If you are going to buy this place make sure you have a solid financial plan. Granted we all want to live off the grid but if we don't have a work able plan we end up with bigger problems.

Oh I don't plan on going off grid... it's 20 minutes from a big college town... an hour from where I live now (state capital). And I have 10% for down payment, but still no banks wanna lend that small amount, it's not worth their time, their ROI just isn't worth their expenses. :(

[Deberosa]

It can be done but you have to really search it out. I had another realtor in Denver get me into my first house that way - she brought the power of her entire firm to play! The house was $76,000 in a time when Denver Real Estate was skyrocketting and people were offering thousands over the asking price to get a house. They didn't want to deal with a pittance to a divorcee and add to that I had next to nothing to put down... They stalled and stalled and finally her firm told that bank that they would end all business with them if they would not finalize the deal and I closed the next day!!!

There are realtors out there that can help - but you have to find the ones that want to help first time buyers get into cheaper properties.

[humbug]

Ryan I would try Greentree Mortgage. The specialize in loans on modulars. A lot of people who can't get loans from anyone else around here on mobiles have used them. From what I understand they are a national company.

[ryanmercer]

Ryan I would try Greentree Mortgage. The specialize in loans on modulars. A lot of people who can't get loans from anyone else around here on mobiles have used them. From what I understand they are a national company.

Hrmm, I"ll have to look into "Greentree" although google brings up dozens of companies by that name.

[MadTripper]

I have some friends that bought and paid for their first house, $20K, on a credit card. I know it sounds dumb however they were able to secure a no interest card for the first year (credit score dependent obviously) and then were able to refinance with an equity loan before the year was up. Just a thought.

Tripper

[kawalekm]

Hi Ryan
When we bought our homestead, we offered financing directly to the seller, which was accepted. Have you talked to the seller directly about wanting to buy the property? Get your numbers together regarding your down payment, and what you can pay per month, and present them to the seller. The seller may be willing to accept your terms if you are sincere about wanting the land and you give them a reasonablely good interest rate. By the way, right after the deal was finalized, the seller sold our note to a mortgage company, so they got all their money then and there.
Michael

[humbug]

Ryan here is a pretty good link for financing a mobile/modular

http://www.bankrate.com/brm/news/mtg/19990722.asp


I called a friend who uses Greentree and she said that Greentree Financial has had some problems in the past. She said if you were late with a payment that they would harrass you. She also said that you had to be on top of your insurance because they were constantly trying to add an insurance premium onto your loan. It was a hassle but she said that those problems seem to be in the past because the company got in trouble.

[machinemaker]

I just read an article about the business of personal lending, (I'll look for it later). There are loan brokers that work to invest private money into mortgages. This gives the lender a better rate of return than what they would get at a bank and the borrower a better rate too.
kent

[Danielle]

Hi Ryan,
Maybe you could work something out through this lending club: http://www.prosper.com/

It is a site for matching up private lenders with borrowers.

[ryanmercer]

:( Someone made a cash offer on it today and is set to close at the end of the week.

[ryanmercer]

Hi Ryan,
Maybe you could work something out through this lending club: http://www.prosper.com/

It is a site for matching up private lenders with borrowers.

Propser wouldn't have worked in my situation, All of the loans are for 36 months. My payments would have have been like 800$ a month, way way beyond what I could have managed.

[Danielle]

I'm sorry this didn't work out for you, Ryan. It sounds like that property would have been so perfect for you. There must be something better around the corner :)

[ryanmercer]

I'm sorry this didn't work out for you, Ryan. It sounds like that property would have been so perfect for you. There must be something better around the corner :)

It's alright, I'm a little bummed but I wasn't even looking... I for some reason just happened to look out of boredom on Saturday and found it. Real-estate market is a complete mess here right now... and probably will be for a year or more so I might just find a good buy yet.

[nancy1340]

Real-estate market is a complete mess here right now... and probably will be for a year or more so I might just find a good buy yet.


You will if you just wait for the right one. Someone wil pay you to take their "country" home. Just keep your eye out and start saving everything you can.

Everytime You start to buy something think "Is this a "WANT" or a NEED"?

[ryanmercer]

You will if you just wait for the right one. Someone wil pay you to take their "country" home. Just keep your eye out and start saving everything you can.

Everytime You start to buy something think "Is this a "WANT" or a NEED"?


:)

P.S. Heinlein is God :) At least to me. (I even call my truck the Gay Deceiver and refer to myself as Lazarus Long when I have a kilt on... and probably use grok at least twice a day in conversation)

[MadTripper]

Are you deadset on one particular area or state? Just curious as to where you are looking.

Tripper

[ryanmercer]

Yes I'm deadest on my state (Indiana) :) And within an hour of where I live now.

[lookitsmary]

Hey Ryan.....I am a realtor down in Texas and don't quite understand banks telling you they won't lend under $100,000. I could get you loans for under $100,000. all day long here. Try Bank Of America. They are very aggresive lenders. Most banks will sell their loans and actually have them sold the minute the ink is dry on the paperwork. You shouldn't have a problem with this. Did you use a realtor to find your property? If so, they should have been able to hook you up with a lender. If not, well, you have to do the leg work yourself. The current subprime mortgage situation should not affect you if you are able to pay the required down payment and closing costs and have good credit. Credit score requirements have increased and if you are below 640 or so you may have a problem. I wish I could help you more, but unfortunately there are many miles between us. Good luck.

[solarman]

Personal loan with collateral is your best bet. Look around for credit unions and join one that will give you a loan. Hit up some family and offer them the 5% interest which is better than they would get investing it right now. Put the property up as collateral or get someone to cosign.
LaMar

[macgeoghagen]

borrow the 100K, buy the place, and then pay back the 70K you didn't need the next day. Im not sure about your state, but in mine you can make a principal payment at any time with no penalties.

[Steve_L]

what about a credit union?

I once belonged to a credit union that wouldn't loan more than $100,000.

[HockeyFan]

See if you can get it like a car loan. It's not unusual to buy a car at that price, and the financing is the same. I'd say that if you can buy the place at 28k, then do it. You'll just be making payments that are like car payments, instead of like house payments; but you'll have the place paid off a lot sooner.