Minimum amount for financing mortgages? (bank owned, for sale, foreclosures)

sdreloc · 09-19-2010, 08:42 PM

What is the minimum amount of a loan that eligible for mortgage financing?
I'm looking at a condo selling for under 60K and after putting 20% down on that, there will not be much left to finance. I probably will not have $60K cash, so is there a minimum loan amount before you can get financing?

I have already checked and the condo complex is mostly owner occupied, and is otherwise eligible for mortgage financing.
Some of the condos there are for sale under the HomePath program, so I could also go with a smaller down payment.

KonaKat · 09-19-2010, 08:55 PM

Call a few local mortgage brokers and ask them. That would be your best source of information. See what types of loans are available and which one works best for you. Congratulations on having practically no need for a mortgage!

kariadventures · 10-25-2010, 01:35 PM

The minimum amount depends on the lender. Shop around and you'll eventually get someone to agree to a mortgage for less than $50k. Not all will, but someone will work with you.
One warning on the condos - if there are homes in there qualify for HomePath, and if many are up for shortsales or foreclosures, then you need to watch out for the HOA fees. These still need to be paid, and as a homeowner, you will be responsible for a larger portion of the deficit to cover building insurance, maintenance, etc., if many homes (e.g. all those HomePath qualifying foreclosed condos) are delinquent.

sdreloc · 10-25-2010, 01:50 PM

If it is a foreclosure, doesn't the bank become the new owner ("bank owned" REO) at that point and then become responsible for getting any delinquent HOA fees and taxes caught up before reselling it?

LVPoker1 · 10-25-2010, 02:18 PM

Quote:

Originally Posted by sdreloc

If it is a foreclosure, doesn't the bank become the new owner ("bank owned" REO) at that point and then become responsible for getting any delinquent HOA fees and taxes caught up before reselling it?

This was my experience in another state. The trouble is that you might not get that money until closing. If you don't get a lien you may not have a claim at all. The new owner is not responsible. The association has to be vigilant in getting liens if needed and even then you may not get paid until the property is resold.