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is it possible to get a loan only for $60,000? We want to pay cash for the home but need additional funds for upgrades.

by glenda.d323 from Mansfield, Tennessee. Jun 2nd 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Yes and no.. most lenders have minimum lending amounts.. and for most, it's $75K to $100K.. This is because there are new laws that limit how much a lender can charge you to originate a loan.. (3%).. so for a $60K loan @ 3% =$1800, and with processing and underwriting ranging from $1000 to $1500, it leaves $300 to $800 as profit, which makes it not very rewarding when looking at the work and risk involved for lenders nowadays.. But, realistically, you should be financing.. understand that most all financial advisers will tell you... Cash Is King!.. If you can borrow for 4% or less, then your far better off leaving your money in the bank where it can earn more than the 4%. and, the interest is tax deductible, so you will pay an overall lower tax rate.. I would suggest you talk to a local mortgage professional, or at the very least a licensed financial adviser, before making a cash purchase.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Jun 3rd 2016
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