Advice sought on financing $40K property

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Hello Bigger Pockets!

This is my first post here, although I have done much reading and learning over the past several months.

I am getting ready to make an offer on my first investment property.  This is somewhat out of necessity, we have moved to a very rural area of South Carolina (Bamberg County) and would like to have property in the school zone where our daughters attend.

My question involves financing.  The property is listed at $39,900 (it is a foreclosure).  I did not know that the large banks typically don't bother with mortgages under $50,000.  

The local, small town bank, says they can help with this, but that a traditional mortgage would take over 90 days and the banker seems to be pushing me toward a Commercial Loan, with which I have no experience.

We have the cash for 20% down and the property probably needs $2-3K in work.  The city assessment for the house is $58,000.

So, does any one have experience with a commercial loan in a buy and hold situation?  Any expertise, experience, and opinions are welcomed.

Thanks in advance!
Mary

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All,

I appreciate your insights and am so thankful for the knowledge base here at Bigger Pockets!

@Mark Tapp we plan to rent the property, so I think 203b is not a viable option, correct?

@Demond Hammonds thanks for that info -- I had not considered a personal loan at this point, certainly worth considering.

@Jerry Padilla yes, while it needs a little work, primarily cosmetic (you should see the paint colors, someone was a big Clemson fan - bright purple and orange!) but is definitely livable.  @Darren Eady My feeling was that something was a bit off with the commercial loan suggestion...I will make some additional calls.

Thanks again for the assistance!

Mary