bank loans fo 50k and under?

Question

Im looking at a Rental for 40k and I am going to put 20% down. Some mortgage brokers are telling me that the banks will not even take the loan because the loan amount is to little, so their fees will be too small. Im being told that I should pay all cash for anything under 60k or so.

Is that true??

Tami R. · Answer

I went to a local bank, got a commercial loan for a "Cheap" house + improvement loans total $20k interest 7.34% fixed - 15 years.

Douglas Christian · Answer

I would say if you can afford to pay cash, then pay the cash and wait about 6mths or a yr and then take out a home equity line of credit on the property.

Whenever you can purchase a property free and clear, I would definitely recommend going that route.  See then you have all the power.  People would tend to say that now your money is tied up, but really is it.  Refi or Equity line of credit.

Worse case scenario you can not get either done for a while would it be so bad to have a property that you paid 60k for and rent it out for what $700-$1000 depends on what you can get for rent in your area.

CASH IS STILL KING

Josh Green · Answer

i've found a few lenders in the area here (smaller banks) that don't have minimums and do 80% LTV.

J Mishkin · Answer

I've found some lenders around here that will do as low as 25,000.

Chase gave me a loan for 25k before, so you might try them.

Mike Slusher · Answer

Thanks for the help, im gonna try and get together the full amount and pay cash.

Thank you

Dawn Vought · Answer

You can get loans this small, but not from all lenders.  Richard had good advice about going to local banks.  Also, a few of my smaller mortgage loans are through Flagstar Bank, which lends in a lot of different states.  Either Google them or PM me and I'll give you a contact over there.

Richard Warren · Answer

While it is not true, they are not entirely wrong.  With 20% down you will probably find someone to take it.  You will pay a higher interest rate and pay more in points.  Your fees as a percentage of the loan will be higher.  Countrywide and WAMU used to accept such loans but theyâ€™re gone now.  Your best bet may be small neighborhood banks.  A mortgage broker probably will not want this loan because their compensation is directly proportional to the size of the loan.  Get out the phone book and start calling the banks yourself.

:cool:

bank loans fo 50k and under?

Most Popular Reply