Mortgages for less than $100k

13 Replies

I have always heard that you couldn’t get a mortgage on a property under $100k. I never knew why you couldn’t I just accepted it as fact. Do you or anyone you know have any experience with these less than $100k loans?

My minimum is 50K but every now and then make an exception. There is not much profit in these smaller loans. 

@Max Cohen , afaik, you'll find the common consensus around BP is: minimum $50k!

Edit: Aah, John Thedford replied 30 seconds earlier than me. I rest my case...

I've read posts on here from other users saying they were able to find banks and/or credit unions that write loans under $100k. Unfortunately I don't recall specific referrals but if you dig around you'll find them. They do exist! 

Originally posted by @Max Cohen :
I have always heard that you couldn’t get a mortgage on a property under $100k.

I never knew why you couldn’t I just accepted it as fact.

Do you or anyone you know have any experience with these less than $100k loans?

What you have heard is NOT true at all. Plenty of banks will lend under $100K. I recently bought a Duplex for $105,000 and the loan on it was $76,000. It was a conventional loan w/ 20% down.  There are fannie/freedie guidelines in place for max loan amount, but I don't think there are any for minimum loan amounts (although don't quote me on it)

If you were told by a bank that they don't deal with sub $100K loans, its probably because they are less profitable,  find a different bank. Perhaps small community bank or credit union, or a direct lender. 

in my area there is a credit union that will do a portfolio loan as little as $30K.

I put a mortgage on a property for $44k. They make up their money by making it a no-prepayment mortgage. I have to ride it out for the five year term. It’s through the commercial arm of a local bank. Same interest rate as all my other mortgages just can’t pay it off early.

@Max Cohen yes you can do a loan under $100K.  Certain lenders say we can't do a certain loan amount because of profit more than anything.

Yes I’m about to get my third mortgage, all under 100k. Smallest is 28k, largest is 60k

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Originally posted by @Max Cohen :
I have always heard that you couldn’t get a mortgage on a property under $100k.

I never knew why you couldn’t I just accepted it as fact.

Do you or anyone you know have any experience with these less than $100k loans?

 In my experience it’s less than $50k for a mortgage. What banks have told you only $100k+?  Crypto is the currency of the future! #bitcoin!!!!

Have I mentioned how much I hate banks? https://www.biggerpockets.com/blogs/8160/51023-ah-banks-pardon-my-french---part-1

This post has been removed.

They're hard to find, but it's possible. I'm currently about to close on a property for $39,000. I going to purchase with hard- money, fix up the property, and then refinance with a small bank that would do such a small amount. It's possible you just have to be creative and make your goals a reality! Also you could go to a credit union for a personal loan, but the max term for that is usually 5 years.

@James Gleeson I am in search of a hard money lender that will lend less than $100k. Can you message me with info on who you used? 

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