Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
What he is likely saying is that lenders don't like to waste their time doing all the due diligence and paperwork for smaller loans when they can do the exact same work on a larger loan and make more money, thus, any loan is likely easier to get in the $250k range than it is in the $90k range. Keep in mind this is generally speaking.
Similar with commercial loans for say an apartment building, it is difficult to find a lender to loan $750k, but much easier if the loan is over $2M.
Real Estate Consultant · Indianapolis, IN · Member since 2014 · 218 posts · 166 votes
12y
I can't imagine that being correct. Each loan program I have looked at whether FHA or not requires at least a 3% down payment. Fannie Mae Homestyle loans are also a renovation loan but those require as much as 15% down depending which type of property you're looking into.
Lender · Denver, CO · Member since 2009 · 1k+ posts · 597 votes
12y
It depends - what are you looking to accomplish? because it could be easier to get a fix and flip loan for $250k than a long term mortgage of $90k. Context is everything here.
Homeowner · Streetsboro, OH · Member since 2014 · 9 posts · 0 votes
12y
He was referring to a $250,000 fix & flip loan vs a $90,000 fix and flip loan. I don't know if this helps but he said that he generally deals with commercial loans.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
What he is likely saying is that lenders don't like to waste their time doing all the due diligence and paperwork for smaller loans when they can do the exact same work on a larger loan and make more money, thus, any loan is likely easier to get in the $250k range than it is in the $90k range. Keep in mind this is generally speaking.
Similar with commercial loans for say an apartment building, it is difficult to find a lender to loan $750k, but much easier if the loan is over $2M.