Does a mortgage loan have to be a minimum amount when purchasing a house?

I'm looking for a house in the Ft Wayne IN area, probably in the less than $20,000 range. I am a first-time home buyer. Is it possible to get a mortgage for an amount this low, assuming the property is of course assessed for at least the amount of the loan? Why kind of down payment and closing costs should I expect to pay? Thanks for any help!

Does a mortgage loan have to be a minimum amount when purchasing a house?
for some mortgage companies- yes, they do have minimums and will offer a better rate when borrowing the average amount currently around $200,000. Others will charge extra large origination (closing) fees to start up the loan since they will not be making as much money off it in the long run. Also the smaller banks especially will not be able to offer a loan of that amount. You might want to try country wide- i recommended them to a couple freinds borrowing around 20-50k and they had luck with getting a approval for a decent price as where they were not hanving luck with the local banks. g luck
Reply:Most lenders do have a $40,000 min. for mortgages. You don't necessarily need a down payment, it would depend on your loan product (check with a mortgage consultant). Closing costs are a much about 1-3% of the purchase price. With only $20,000 you may be able to qualify for a personal loan intead but the interest rate may not be as competetive. Good luck
Reply:All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrower%26lt;!--and even for those with more experience! Here, we will discuss the different types of loan options, and how they work.





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First, there are two main broad categories of mortgage loans: government loans (FHA, VA, and RHS, or Rural Housing Service loans) and conventional loans (all other loans). In general, government loans have low or no down payment requirements for the purchaser--%26gt;and are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
Reply:As a first time home buyer your best bet is probably a FHA loan, however, I'm not sure if they will loan for that small amount. Why not just get pre-qualified and hat way you'll not only know what you can afford but how much you can borrow.


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Good luck.