Finance purchase under 35k

[Jason Foy]

Hello,

I talked with two credit union mortgage brokers today. I was seeking funding of about 30k to purchase a property to fix up and rent out.

I am willing to put 20% down And pay those closing costs. Property has light cosmetic work paint , trim , flooring and some fixture updates so it’s livable as is but can have value added to it.

she had told me sometimes the lenders will refuse to cut the loan, as closing costs get to be to high? and would need special permission because her software won’t tell her rates on amounts that small, and sounded like this could be an issue for refinance. Is it possible to purchase a second house with conventional mortgage under 35k, or am I best using a 401k to pull cash and finance the deal then refinance after repairs?