Likelihood of bank financing in sub $30k market??

[Bab Adetiba]

What's the likelihood of a credit union or bank lending for property under $30k? I am familiar with an FHA and the 6-12 month owner occupied living condition and the 403k which includes rehab cost but do they generally go to properties under $30k? Independent of one's credit score.

I have +/- $10K cash to purchase and don't want to put $20k cash in, and I don't want to wait another year to raise $10k. I have not worked with or researched any HMLs either.

I am in Dallas and new SFHs are on the market due to mainly governmental factors. Any advice would help! Thanks!

[Glenn D.]

@Bab Adetiba

There are tons of options for financing. Hard or Private Money Lenders are available etc. BUT I would say that you can probably do better. Here is one example that we just completed. We purchased with savings, rehabbed it, rented/sold it and then used a bank to get a HELOC so that we got all of our money back out of it PLUS.

Here are some of the details. We found a property that needed a lot of interior cosmetic rehab and bought it for $10,000 from our savings.  We went to Lowe's and got a line of credit from them and used their 0% finance deals to buy almost all of the materials and did the work ourselves.  

All the while we advertised it through FB and CL- we had not gone pro yet and didn't understand BP at that point and so did not advertise it on BP.  Our plan was to have multiple exit strategies.  

1. We advertised it first as a Wholesale.  If we found a buyer before we actually purchased it who would pay us what we wanted we were going to sell it wholesale.
2. Once the purchase went through we advertised it as a rehabber flip and started the demo.
3. During different stages we added our desired profit and advertised it as a fixer upper.
4. During that time we found a buyer through FB who wanted to purchase it once we completed it.

We contracted it to them on a Lease option Purchase which means at some future date they can exercise there option to purchase but until then they are strictly renting it.

So all that being said, we bought it at $10,000 put in about $20 in rehab (personal loans for some of this) and sold/optioned it at $67,500. We then used our local bank to get a HELOC for $56,000.

Just wanted to illustrate a possibility for you.  I hope you do well.