Are there 50k loans available?

Question

I have a property in Fort Wayne that I own free and clear.  I just remodeled it and am looking to rent it and pull about 50k out of it.  The property is worth about 120k now.  What kind of loan product should I go for?

Chad Davis · Answer

@Steve Triano Did you find a solution for this? 65k Is our minimum.

Staci Rogers · Answer

Hi Steve,

I am happy to connect and discuss with you.

Russell Brazil · Answer

A byproduct of Dodd-Frank which was targeted at predatory lenders, is that now it's incredibly hard to get loans on properties under $100k. The basic fees on a loan make up too high a percentage on low priced loans which classifies them as predatory. Instead of dropping their fees and losing money on the loans, lenders simply won't issue loans at those low prices

Ko Kashiwagi · Answer

DSCR would be an easy option to go assuming you're looking for a long term solution. Most lenders won't go below 75-100k in loan amounts but there are options!

Brittany Minocchi · Answer

Can you qualify using employment history, tax returns and DTI? If so, you could try conventional. Otherwise, options are very limited with DSCR loans of that amount. Possible, yes, but you'll be looking at $5k-$6k in lender fees plus title fees, prepaids and escrows and a higher rate. $75k is a little easier to find and slightly lower rates/fees.

Derek Brickley · Answer

Hey Steve, with a conventional loan that may be possible would depend on a few factors.  It would be hard to find something in the DSCR space for that, but feel free to reach out.

Chris Seveney · Answer

Speak to a local lender to see if you can get a line of credit or a loan against it. It may be challenging but a local lender will be best.