Small loans - who lends on property under 100K?

Investor · Los Angeles, CA · Member since 2015 · 86 posts · 21 votes

Greetings all,

I'm finding some good low cost, cash flowing properties in Ohio. Problem is, my usual lenders will not lend on these because their minimum loan is 100K. Is there an option out there for conventional loans for buy and hold investors who want properties under 80K?

Thank you,

Tom Camarda

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Chris MasonPro Member

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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

Originally posted by @Mushfiq S.:

Originally posted by @James Wise:

Originally posted by @Mushfiq S.:

Originally posted by @James Wise:

Originally posted by @Tom Camarda:

Greetings all,

Thank you,

Tom Camarda

Tom,

Citizens bank, Wells Fargo & MB Financial will all lend on sub 80k properties. MB will actually loan on sub 30k properties if you were going that route.

Would these banks charge additional points or other fees in order to cover the cost of underwriting?

Of course, nobody works for free.

Yes. No on works for free. I was saying in comparison to a loan for say about $200k versus one under $50k. Would they have additional costs that are not present in larger loans?

I do not want to go through the underwriting if the costs are extremely high.

Origination costs that lenders incur are relatively flat. The underwriter doesn't get paid less for your $75k deal than she does on that $500k deal. And so on.

As a % of amount financed, that number will shoot up as loan amount decreases. Which, in turn, creates a bunch of compliance hurdles because CFPB QM rules focus on % of loan amount as the metric.

If the advice in this thread hasn't gotten you an answer yet, google search "poorest zip code in Ohio" and find out who is doing those mortgages. If you need to, call the listing agents on some $50k listings, say "hey I was thinking of putting an offer in on your listing at 123 Main St but my lender says they can't go that low... do you know anyone?" There's your willing expert.

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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
9y
@James Masotti
Actually i had never used that CU before. What I liked was the 10 year fixed, others had offered 5 year fixed, I liked the 20 year Amort., but I would prefer 80% LTV, which is what I had gotten at other sources. Another feature is that they allowed seller second mortgages, which some other institutions would not. And they were able to close quickly.
0 Reply
Wendell De Guzman
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
9y
Originally posted by @Tom Camarda:
Greetings all,
I'm finding some good low cost, cash flowing properties in Ohio. Problem is, my usual lenders will not lend on these because their minimum loan is 100K. Is there an option out there for conventional loans for buy and hold investors who want properties under 80K?
Thank you,
Tom Camarda
Contact @Jerry Padilla
1 Reply
Michael V
Real Estate Broker · Kirtland, OH · Member since 2013 · 6 posts · 1 vote
9y
Huntington will loan as little as $50k. If you call around to lenders they are a wealth of information and can give you some good tips. Some will even refer you to other lenders they know who can get specific deals done if their own hands are tied.
0 Reply
Preston Schmidt
Lender · Minneapolis, MN · Member since 2016 · 61 posts · 20 votes
9y
You're going to get hit with a slight rate bump due to the lower loan amount but my company has no minimum. I have set my personal minimum at $80k but depending on the situation I could be persuaded to go lower ;)
2 Reply
Franklin Romine
Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
9y
Visa and Master Card lend on properties under $50K.

Frank
1 Reply
Lisa Phillips
Real Estate Investor · Arlington, VA · Member since 2012 · 300 posts · 277 votes
9y
Every time I saw someone post on BP, "You can't find lending on Sub30k properties," I just shook my head because we told people (myself and the sub30k mastermind group - we have a group of thought leaders in there) a million times how to do it. It's interesting these threads are starting up now. Im glad people aren't so "appalled" anymore (from the dozens and dozens of articles and comments seen on here).
No lower rates, maybe a shorter term (i.e. 20 yr vs 30 yr), but nope, no rate increase at all for this price range, or fee increases, are necessary for this price range at all.
2 Reply
Jerry Padilla
Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
9y
@Wendell De Guzman Thank you for the mention!
There are financing options With Conventional financing in the Sub $50k and Sub $30k range. There may be a slightly higher rate of an additional fee. There are very few lenders that do this financing, but it is possible! It is possible to Cash out on these properties as well - You can cash out on up to 10 mortgages properties. You need a lender and loan officer that are up to date on guideline changes, investor friendly AND experienced working with investors.
0 Reply
Aziz Wali
Member since 2019 · 10 posts · 3 votes
7y
Hi @Ryan Mainwaring I would appreciate if you could help me with finding private money lender for getting 2 property 35K each in PA. Thank You
0 Reply
Aziz Wali
Member since 2019 · 10 posts · 3 votes
7y
Hello @Preston Schmidt I am looking at 70K for 2 properties. I would appreciate the help
0 Reply
Chris Malala
Member since 2019 · 1 post · 0 votes
7y
Same question. Although I guess I could try local, Im trying to do this online since I dont live in that area yet.
East Tennessee has Town Homes in the 60-80k range that if they were in, lets say Florida, would easily be 150-200k town homes. A lot prettier than ones youd find in FL too. Problem is banks see the price and say nope! Im guessing the policy revolves around negative stigma. (part time or no job, bad or low paying job, crime, drugs) Definitely not me.
Kind of frustrating lol. Esp since my scores are 810+ and make good money. This is a plan for me to move and save a ton. First time buyer as well, renting like a doofus for far too long.
0 Reply
Scot Howat
Investor · Hoffman Estates, IL · Member since 2014 · 434 posts · 185 votes
5y
I run into this issue constantly. The other caveat is that the banks want the value of the property to be at least 100k. Which doesn't work for my market either. Any lenders that can do this (in S Corp)? 75% LTV on a 90k property
0 Reply
Steve Meyers
Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
4y
Quote from @Ryan Mainwaring:

@Tom Camarda I work with a few lenders that will go below 100k, pm if you are interested.

@Ryan Mainwaring can you message me your lenders?
0 Reply
Ryan Mainwaring
Rental Property Investor · Blacklick, OH · Member since 2016 · 286 posts · 253 votes
4y
Quote from @Steve Meyers:

Quote from @Ryan Mainwaring:

@Tom Camarda I work with a few lenders that will go below 100k, pm if you are interested.

@Ryan Mainwaring can you message me your lenders?

@Steve Meyers Thank you for reaching out! The lenders I mentioned, no longer work with loans below 100k. Sorry
0 Reply
Harry Torrenegra
Member since 2020 · 5 posts · 2 votes
3y
Quote from @Ryan Mainwaring:

@Tom Camarda I work with a few lenders that will go below 100k, pm if you are interested.
Hi, I am also looking for lenders for properties under 100k. Would you be able to share this info.
Thanks!
0 Reply
Jared HottleBusiness Member
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
3y
I would try local banks. Typically they are more likely to mess with properties under 100k and can give you the best terms.
[email protected]319-288-5382
Jared Hottle Real Estate59 Reviews
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Laura Smith
Member since 2022 · 2 posts · 0 votes
3y
Quote from @Ryan Mainwaring:

@Tom Camarda I work with a few lenders that will go below 100k, pm if you are interested.

Please add me to that list for info? Thanks!
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