homes under 30k in Toledo,OH?

[Emily Hill]

Hello everyone! I have two questions for people that live in the Toledo area:

Is it possible to buy a decent home in Toledo,OH for under 30k?

I'd obtain a loan and would be putting down 20%. I've heard that some banks don't like to lend in small amounts like this? Is this true? What are your experiences? 

Thanks so much and have a great day!

-Emily

[Chad Boyers]

Hi Emily! I would say that yes, you can buy decent homes for about $30k in Toledo.  You do have to do some homework to make sure that it's in a decent area and that there's not too much work needed, but there are definitely options out there.  I would say that much of 43612 and 43613 are decent, but as always, there are exceptions.  

Regarding getting lower dollar loans, I agree that many lenders don't want to deal with them. This is for 2 reasons: 1) They don't make much on them and have to work just as hard as any other loan, and 2) your fees in relation to the loan amount can be quite high.  For example, a lender may have a $750 origination fee for any given loan amount, meaning that for a $20,000 loan that's 3.75% of the total loan value, where on a $100,000 loan it's only 0.75%.  That's a big difference, and that's just one fee of many that are involved.  For those amounts, I'd suggest at least looking into a private loan where you'd pay a higher interest rate but wouldn't have the related borrowing fees.  

Best of luck to you!