Is a 55,000 dollar mortgage possible?

18 Replies

I recently applied for a $55,000 mortgage with multiple big name banks and was informed that they don't write mortgages for that amount. Is it possible to get approved for such a low mortgage or will the points always be too high if credit scores are below 740? Credit scores are 727 and 700 and gross monthly income is $17,500... Should I keep looking around or is it a lost cause? The investment property is in Florida.

Keep looking. There are a few banks who lend under $50,000. 700 credit score should't be a hold back. I think the minimum now is 640 or a little less depending on the program.

BB&T gave me a mortgage for $37k. Trustmark was $39k. There are plenty if you can avoid the big banks. Interest rates were very low as well.

Thanks for the info and the quick response... I was feeling like my ship was sank. I'll give BB&T a shot, ask a few more questions before I let them run my credit and bring my score down.

Joan and Imad,

Thanks to you both!!!

@Rick Baimbridge

Wells Fargo gave me loans in the low 40's earlier this year. I'm not sure what their credit score requirements are.

Dump the big banks and go with small local banks. I have multiple portfolio loans with a small local bank that they keep in house and do not resell. I have several loans that are between 25k and 30k.

@Rick Baimbridge

What I'm learning very fast is that in real estate (and often times life in general) is that anything is possible! As the others suggested, check with the smaller banks. Most of those big banks have their heads too far up their rear ends to help with your situation. If you have no luck with the BB&T or Wells Fargo route, contact me & I can give you a list of several mortgage companies in Florida who'd gladly help with a mortgage in that amount. Good luck!

Look too small local credit unions.

I just did one for $30K in Central FL about 3 months ago. The lender was BankFirst. Also there were a couple others I found that would do the lower balance loans. I haven't found a "portfolio" lender in the area yet, but would love to hear anyone that has since I know they're out there.

Originally posted by @Brant Richardson :
@Rick Baimbridge

Wells Fargo gave me loans in the low 40's earlier this year. I'm not sure what their credit score requirements are.

Were your Wells Fargo loans under $40K for real estate purchases? Not a HELOC or 2nd? I have an account there but was under the impression they wouldn't do an under $50K real estate loan.

Good stuff, good stuff! I was really worried all day long that I was going to be out of the game after getting the "get lost" from the bank. Same bank would kill to give me a 55K loan for a car... I'll keep looking and chugging along.

I was also a little nervous about asking my first question on BP, but pleasantly surprised at the response/ support.

Thanks for taking a moment to answer, I feel tons better! Thanks again to all!

@Rick Baimbridge,

As @Imad M. said, BB&T will do smaller loans.

I believe they'll go as small as $25k. Go to a local branch and don't go through their mortgage department. The closing costs are way less if you don't go through their mortgage department. I know first hand.

@k.mariepoe

These were straight home loans, 30 year fixed rate for an out of state investor. Not a HELOC, 2nd or car loan. The loans are in the low 40's. I made a lot of calls to smaller banks in the area I invest and only found one willing to go into the 40's and he was reluctant, with the understanding that most of my loans would be in the 50's.

Better to try local banks with such amounts. I have gotten several loans like that. The smallest one I got was $17,500 (it was one of three properties we were refinancing though, so it was part of a package basically).

TD Bank writes just about any sized loan.

@Michael Jobe  I am in the same situation as I am looking for 2/1 and 3/1.  Do you mind sharing your mortgage info?  Really appreciate it.

Originally posted by @K. Marie Poe:
Originally posted by @Brant Richardson:
@Rick Baimbridge

Wells Fargo gave me loans in the low 40's earlier this year. I'm not sure what their credit score requirements are.

Were your Wells Fargo loans under $40K for real estate purchases? Not a HELOC or 2nd? I have an account there but was under the impression they wouldn't do an under $50K real estate loan.

 I have a $40K loan from about a year ago with them, though things could have easily changed since then with the new requirements.

Bb&t did a 35k loan for me

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