Conventional Loan Minimum Limits

[Chris Holloway]

I have been looking at many properties for my next project "Rental Buy and Hold" and will be doing this project solo financially. My price range with being able to put down a minimum of 25-30 percent is a max of 150,000. I have done some research and the information I am getting is that most banks on fiance a minium of 150,000. Does that seem right? Also if this is right if I purchase a property for 150,000 and but down 25% the loan would be lower than 150,000 and I couldn't get normal conventional fiancing. 

[Jon Puente]

Hey Chris, 

That is completely false, and I am not sure what lenders you have spoken to.  I am a mortgage broker and work with several lenders who will go below 100K for loan amount, using a Conventional Loan.  People do this all the time for rental properties.  Rates wont be great, but at least it gets you in the door for leasing the property and collecting rent!

[Chris Holloway]

Thanks Jon,

This inquiry has had my head going around in circles. Do you have any suggestions for lenders as to where I should look? Local Banks, Big Banks etc.....

[Eliott Elias]

There are lenders who will finance for less, you need a good mortgage broker who has a lot of lender options to work with. 

[Dave Skow]

@Chris Holloway- thanks - there are  plently of lenders  doing loans  under 150K

[Jimmy Lieu]

Quote from @Chris Holloway:

I have been looking at many properties for my next project "Rental Buy and Hold" and will be doing this project solo financially. My price range with being able to put down a minimum of 25-30 percent is a max of 150,000. I have done some research and the information I am getting is that most banks on fiance a minium of 150,000. Does that seem right? Also if this is right if I purchase a property for 150,000 and but down 25% the loan would be lower than 150,000 and I couldn't get normal conventional fiancing. 

Hey Chris, I am a local investor and agent here in Columbus and have done quite a few flips and BRRRRs myself and I've used everything from hard money to conventional loans. All the lenders I've talked to do loans even under 100k - shouldn't be a problem at all. I can refer you to my lender network as I've worked with them extensively. They can definitely help with your financing situation. Feel free to reach out!

[Remington Lyman]

Quote from @Chris Holloway:

I have been looking at many properties for my next project "Rental Buy and Hold" and will be doing this project solo financially. My price range with being able to put down a minimum of 25-30 percent is a max of 150,000. I have done some research and the information I am getting is that most banks on fiance a minium of 150,000. Does that seem right? Also if this is right if I purchase a property for 150,000 and but down 25% the loan would be lower than 150,000 and I couldn't get normal conventional fiancing. 

 Are you able to live in the property?

[Chris Holloway]

Good Day Remington,

For the right duplex, I would house hack but in the Columbus, Oh area but haven't found anything that affordable 400-500k that I would want my family and I to live in. Before my wife and I had out daughter all the projects we did in California were house hacks however now at a different dynamic with a kid.

[Jerry Padilla]

@Chris Holloway 

This is a lender-only requirement, not an industry minimum.   I can answer any questions you have about financing, and we can lend in OH. 

[Patrick Drury]

@Chris Holloway
You should be fine if you are looking to be in the 150k range. Usually, some lenders won't lend below 100k, but I know a handful that will.

[Remington Lyman]

Quote from @Chris Holloway:

Good Day Remington,

For the right duplex, I would house hack but in the Columbus, Oh area but haven't found anything that affordable 400-500k that I would want my family and I to live in. Before my wife and I had out daughter all the projects we did in California were house hacks however now at a different dynamic with a kid.

I know some loan programs that you can do 15% down on

[Alfath Ahmed]

I have some lender referrals that I can send your way that can help you out with your situation.