Minimum Rental Property Mortgage Amount?

Question

Hello Bigger Pockets Family!! I was wondering what is the average minimum purchase amount a bank or credit union would finance on a rental property after your  20%-25% down payment? ￼

Harjeet Bhatti · Answer

@Fernando Asencio  Mostly big banks don't have overlays. I send you list of banks.

Jeffery Drayton · Answer

@Harjeet Bhatti

Great info, can you send me that list of banks as well? I’m very interested

Harjeet Bhatti · Answer

@Jeffrey Drayton Mostly banks doesn't have lower loan amount restrictions unless they have overlays.

Account Closed · Answer

Can you please send me a list as well. I've been calling different banks and lenders all week and I'm getting the same response. they don't do loans less than 50k.

Fernando Asencio · Answer

@Harjeet Bhatti

Hi which banks are those? Small community banks? The bigger banks are a bit of a headache.

Harjeet Bhatti · Answer

@Jeffrey Drayton Some banks won't lend below certain amount like $50000 or $75000 so that's overlays. There are banks will lend on any amount. We don't have any overlays.

Jeffery Drayton · Answer

@Harjeet Bhatti , How do overlays work??  I was looking to maybe purchase a SFH rental property for between $65k- $75 with 20-25% down, should I be fine in this scenario?￼

Minimum Rental Property Mortgage Amount?

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