Looking to put 20-25% down on a 70K home

[Petros Khachatrian]

Hi,

I've heard that lenders don't typically provide that small of loans? How true is that? I've tried calling a few lenders, but I guess with the timezone difference, they aren't available currently. If anyone knows lenders that can offer conventional loans for let's say 50,000 mortgage, please let me know. Thanks!

[Nadeem Alamgir]

Many lenders tend to walk away from smaller loan amounts (typically under $75K) because the margins don’t justify the underwriting and processing costs.

I talk to many DSCR lenders and some might consider it, but realistically, if you're looking in markets like Cleveland, you're better off targeting higher purchase prices. I've seen the areas where these low priced deals usually pop up, and in most cases, they come with higher risk and weaker tenant base. I'd advice you to look elsewhere if you're aiming for long term stability and financing ease.