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Old 06-17-2015, 01:46 PM
 
Location: Cape Cod
630 posts, read 981,201 times
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How difficult will it be to obtain a mortgage in the amount of $50K or $60K? Is it more likely with a credit union (where we have all our accounts and two IRAs) or a small local bank.

We would need a mortgage in that amount to buy a small house but one that did not need the famous TLC touches one reads about in the ads. It never occurred to us that it might be difficult to get a small mortgage. We could qualify for a VA loan, but have excellent credit (low 800s) if we needed or it was better to apply for a conventional loan.

Are there other loans better than a mortgage. I don't think we can take a loan out against our IRAs, so that doesn't seem to be an option. Just wondering how we would get the additional money we'd want for a slightly upgraded property.
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Old 06-17-2015, 02:57 PM
 
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I have heard of Wells Fargo offering mortgages as low as 50k, although I would try smaller banks first if you want to have a better experience.
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Old 06-19-2015, 09:11 AM
 
Location: Cape Cod
630 posts, read 981,201 times
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Emailed our credit union, response back was "we'd be happy to write a mortgage for $50 or $60K when you're ready".

Thanks for the advice about a small local bank/credit union.
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Old 06-26-2015, 12:58 PM
 
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There's not a lot of money to be amde with small loans but some lenders will still do them.

You don't want to borrow money against your retirement funds. Take out a mortgage.

I would also suggest a financial planner so you can start to understand the basics of money & finance.
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Old 06-26-2015, 05:30 PM
 
Location: Cape Cod
630 posts, read 981,201 times
Reputation: 595
What about my post made you think I don't understand finance and money?
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Old 06-26-2015, 05:40 PM
 
3,319 posts, read 7,261,485 times
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Quote:
Originally Posted by GMarcan920 View Post
How difficult will it be to obtain a mortgage in the amount of $50K or $60K? Is it more likely with a credit union (where we have all our accounts and two IRAs) or a small local bank.

We would need a mortgage in that amount to buy a small house but one that did not need the famous TLC touches one reads about in the ads. It never occurred to us that it might be difficult to get a small mortgage. We could qualify for a VA loan, but have excellent credit (low 800s) if we needed or it was better to apply for a conventional loan.

Are there other loans better than a mortgage. I don't think we can take a loan out against our IRAs, so that doesn't seem to be an option. Just wondering how we would get the additional money we'd want for a slightly upgraded property.
You can absolutely get a $50,000 VA mortgage. The issue would be that some Loan Officers would find a way to avoid working with you, because compensation is now based upon dollar volume, and LO compensation ranges from about 50 to about 150 basis points, so in an LO's mind, their time is better spent waiting/working toward a bigger loan, than doing a good job for you and getting referrals down the road.

You do take pricing hits for loan amount, but still, you're looking at middle-4's, tops. And, IMO, there is no better vehicle than mortgage interest, as it is a direct tax write off (consult your CPA, your mileage may vary), as opposed to other means.
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