Personal or Mortgage?

Looking at a house that is 25K. Good foundation but need minor repair and renovation. Wondering if the total cost ( loan, closing, interest, others) would be cheaper for a personal loan or a small mortgage loan. I know its difficult to find small mortgage loan for under 50K but if I am would it be more expensive than personal loan ? 

3 Answers

Relevance
  • 4 weeks ago

    It would be impossible to get a personal loan for that.  Two of the requirements for a personal loan are you must tell the bank what you plan to do with the money, and that you must not use any of it for buying a house or a car.

    • Commenter avatarLog in to reply to the answers
  • 4 weeks ago

    Almost any mortgage loan will have a much lower interest rate than most personal loans. Look into an FHA 203(k).

    • Commenter avatarLog in to reply to the answers
  • Anonymous
    4 weeks ago

    Personal loans for that amount would not be possible for many or even most people.  

    I could probably get one. I'm a millionaire with 35+ years of great credit and a score of around 827.

    Of course, I could break a CD or wait for my next CD to mature. 

    You might have trouble because of the relatively small amount means the fees involved would jack up your effective rate.

    You might have to save up & pay cash.

    • Commenter avatarLog in to reply to the answers
Still have questions? Get answers by asking now.