Granada Hills, CA · Member since 2020 · 2 posts · 3 votes
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!
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
1y
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.
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
1y
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.
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
1y
There are DSCR lenders that will do loans as low as 50k. I did a couple DSCR loans in September with purchase prices of 75k and 70k. I even put these loans in my personal name vs my LLC.
Lender · Sarasota FL · Member since 2025 · 27 posts · 6 votes
1y
That is awfully low loan amount. You might have better luck with private money. All my investors only go down to 95k total loan amount. You are looking at 53k loan, well below the norm of 100k. You might get better terms, and quicker ROI with a personal loan.