What type of loan would be best for a home under 50k with a low down payment?

FHA or USDA if it is in an approved USDA eligible area...your issue will be that most lenders have a minimum on loans they will do and $50k is usually it. You might be best served by going to a local bank and seeing what they can do for you.

As others have stated.. FHA or USDA and VA if you qualify, however because of the low loan amount, you're better off with the local bank or credit union... 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. 480-287-5714 WilliamAcres.com

If the home you are looking for is in a USDA designated area, then you should be able to get in for just closing costs. FHA requires a down payment of $1,750 on a $50k purchase. Because of compensation caps, commonly referred to as Section 32, most lenders no longer do loans for less than $50k. However, it is possible that a local community bank or Credit union may be willing to entertain a smaller loan like this for you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

FHA, but you will have to find a lender who will go that low.

FHA loans require a low down payment, so that may be the loan program you would want to look in to. If you have about $2,000 saved for a down payment that will be sufficient for a $50,000 home funded through an FHA loan. USDA is another option if you are in a designated area. Finally, if you qualify for a VA loan (must be a veteran or active service member), that program also has a low down payment and low interest rate. Please feel free to let us know if you have any other questions.