Was told One Brokerage won't do a loan for under $150,000?

Question

We are just getting started in our REI journey and right now trying to get pre-approved and pick a market. We have $25,000 all in to invest, does that seem like enough? From everything I've read you can get started with no or little money down so I'm surprised the One Brokerage told me they couldn't help me....

Taking on a partner is not an option however we could do a HELOC as we have a TON of equity in our current home but we would rather not.

Any advice for a newbie?

Thanks!

Taking on a partner is not an option however we could do a HELOC as we have a TON of equity in our current home but we would rather not.

Any advice for a newbie?

Thanks!

Jack Matthias · Answer

If your looking anywhere in the midwest, shoot me a message. Would be happy to help you out!

Richard Loniewski · Answer

Start connecting with other investors who have capital and are looking for deals, you can do a JV to get your first deal done. FYI our min loan amount is 100k

Adeva Edobor · Answer

@Taryn Cuen Try reaching out to a credit Union. I know the cost to originate loans is currently limiting lenders but a few years ago, Navy Federal credit Union financed a $26,000 purchase for me.

Russell Brazil · Answer

Dodd-Frank's unintended consequences. It pushed the actual cost to originate loans up, and at the same time limited the amount a lender could charge, and if they exceed those then the loan is considered predatory. So then what happens is banks simply refuse to originate loans that they will then lose money on....and that in turn means low priced properties become nearly impossible to finance.

Ko Kashiwagi · Answer

Hi Taryn,

You can still find deals with $25,000 down. Many lenders have a minimum loan amount of $100,000, but there are a couple lenders that can fund loans as small as $75,000. With your $25,000 down payment + closing costs you should be able to purchase a $100,000 property. Feel free to message me with questions.

Denis Ponder · Answer

You can find lenders who will loan you an amount under $150k, so I would explore those options wherever you plan to invest.

If you can afford the increased housing payment from the refinance, I would seriously explore that. Right now, it's about getting in the game and letting time work to your advantage. You can make moves down the road to reduce your debt if that is a concern to you.

It all depends on your goals and how quickly you want to achieve them.

Erik Estrada · Answer

If you are planning to buy an investment property, please keep in mind that most lenders will want a minimum of 25% down for first timers and 6 months reserves + closing costs.

Have you explored going with a house hack instead? You can go with a lower down payment and take advantage of first time homebuyer programs in your state.

Taryn Cuen · Answer

yes that is our price range. thanks!

Was told One Brokerage won't do a loan for under $150,000?

Was told One Brokerage won't do a loan for under $150,000?

Most Popular Reply

8 Replies