What are you guys doing to get bank financing on low amount loans? I have a deal very close to turn key at $27k but it seems no one lends below $75k??
It's not true that no one lends under 75k - we have heard that same retort of 'conventional wisdom' before, from at least one bank / loan originator. While many banks and bankers will take into consideration your experience level among other factors in originating loans (ie: risk factors), sometimes you will not get the 'straight' answer in dealing with the folks that originate loans.
I'd just advise to not assume that one bank's conventional wisdom is true for all.
We've been told that and have multiple loans now that were originated with less than $75k balance, with two more on schedule to close here in 2-3 weeks.
@Jason Watkins there are lenders with no minimum loan amount, however, do you have any idea what you are buying for $27K? It is an absolute given that something "very close to turn key" for $27K is in a war zone. It is not possible to buy anything in anything close to a decent area for that price. Lenders will be doing you a favor if they don't lend.
Try your local credit union. I bought a house for 25k with credit cards, anything is possible.
@Mike D'Arrigo - this is 2/1 half a side-by-side duplex, i live less than a half mile away, it's just rural pennsylvania - there are roughly 10-12 others well under $100k all around me - the market is just very cheap here. i bought my own 3/2.5 with an acre and a separate pole building for $137k
@Jim Goebel thank you, i had no idea - i had only reached out to 3 so far but the parameters were basically a carbon copy of each other, lol
@Nick Rutkowski - good thought, i'll check there too, i do have enough of credit cards to buy it as well - so then i assume if banks will sometimes lend under $75k then they would refinance under $75k as well right? so if i have to could buy whatever way is possible and refi to cash out down the road...
No assuming anything, make sure you check with your lender before making a commitment.
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