Small Mortgages?

[Richard C.]

This may sound like a strange question, but here goes:

I have found a house, in a town I am very familiar with, that is an excellent deal at 35k. My problem is getting a mortgage. And not due to down payment (I can do that no problem) or credit (750-ish) but simply because I can't find a bank that will do a loan that small. The credit union where I do my personal banking won't do anything under 50k, and local banks I have called won't even go that low.

This isn't a good enough deal to make it worth it to pay some hard money lender 15% interest. Do I have any options (other than family and friends, which are not an option)?

Thanks.