I am looking to purchase my first investment property and was hoping for some insight or direction!
Looking for a home in the range of 50-70k
Down payment- 20-25%
Credit - 770
I went through Quicken Loans to see what I could be pre-qualified for and they asked if I would be willing to look in the 100-120k range for a property. They said that the loan amount would be to small compared to the value of the home. Is this typical when searching for financing in this range? or should I be able to find a lender for this situation?
Any advice would be greatly appreciated!
Timothy, find a local bank or mortgage company. The L.O. (loan officer) you spoke to is trying to upsell you so they make more money and that's B.S. If you are in this for the long haul you need to develop a relationship with at least a couple of local L.O's. You are a strong borrower based on your credit score and down payment. If you have a decent job history to go with it you're golden. Even if you only want a small loan there are plenty of locals that would appreciate helping you. They will be interested in developing a mutually beneficial relationship with a long term focus and they won't be pushing to try to make $$ on you each and every deal. A good bank or L.O. is a valuable asset. Take the time to find one or two.
Quicken loans uses secondary lenders that won't typically loan amounts that low. That is probably why with 20-25% down they suggested 100-120 which would mean a loan of 75-90k which are typically the lowest amounts loaned by these types of lenders. Local or regional banks are definitely the way to go to finance those smaller amounts. And with a good credit history and score shouldn't be a problem to get financed.
Thank you Brett and Beau for your responses. They were very helpful. I will begin to reach out to local banks and start to build those relationships. Just the direction I needed !
@Timothy OConnor that loan amount shouldn't be a problem.
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