I want to look at an investment property that is only listed at $15,000. Would the bank just laugh at me if I went in and asked for a mortgage on this property?
No, there is normally no minimum, but it may not be worth it because most of the closing costs are fixed (application fees, processing fees, title search, etc). So you pay the same dollar amount on these fixed closing items on a $10,000 mortgage as as a $100,000 one and that would be a big percentage of your costs.
Check with banks, because closing costs will vary area to area as well as lender to lender.
No, there is normally no minimum, but it may not be worth it because most of the closing costs are fixed (application fees, processing fees, title search, etc). So you pay the same dollar amount on these fixed closing items on a $10,000 mortgage as as a $100,000 one and that would be a big percentage of your costs.
Check with banks, because closing costs will vary area to area as well as lender to lender.
References :
buying land is not the same as buying a piece of land with a home on it. From my knowledge banks don’t handle land loans. And, what do you plan to put on that land? And why do you think it will be an "investment". There is a reason you know why just plots of land stay on a realtor’s list of things to sell for over 10 years. It’s cause there’s nothing on it. What you’d get is a "loan" and not a "mortgage" on that property.
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Dont get a so called first mortgage. It will be a first mortgage either way for title purposes. But get a second mortgage most companies will want to do a minimum of a 10,000 second mortgage or equity line of credit. But they have no problem being in first lein position, in fact they would love it.
Just call a broker or bank and say okay lets do a second mortgage on it, if you dont want to do a first. Usually these are no fees and they pay the appraisal and title.
Ive done many of these and thats how I would handle it.
As the above person said I just assumed this property was a home. You only do mortgage loans on homes. If its land the person above me is 100% accurate.
Good Luck
References :
30 years mortgage real estate exp