How to get loans below 70k

Question

Hi all - I'm purchasing single family rentals in Alabama and Louisiana for $50-70k and having trouble finding conventional and private lenders willing to lend below 75k threshold. What options do I have? Anyone know of lenders with a lower minimum threshold?

Account Closed · Answer

Hi Stephanie:

Our minimum loan amount is $55,000.

Patrick Drury · Answer

@Stephanie YangMost lenders won't do it because they essentially don't make anything. I know some that will lend in that price range in Ohio. You can connect with them and see if they lend in Alabama.

Dave Skow · Answer

@Stephanie Yang- there are some lenders that can  still help with these  lower  loan amounts

Dylan Thomas · Answer

@Stephanie Yang I have a Lender in the Mobile, AL area that can help you with loans that size. We recently worked together on a transaction where the loan amount was 65k.

I sent you a message in my Connection Request

Brittany Minocchi · Answer

Lower loan amounts can be tough because 1) loan officers don’t make much on them, so they don’t like to do them and 2) we run into issues with them passing compliance once loan costs are accounted for (compliance = the things we have in place these days to protect buyers and the economy from a 2008 repeat). That’s assuming you’re talking about traditional financing, nonQM is a different story….I have yet to find someone willing to go below $75k for those. I come across low loan amounts often in my market - happy to chat if you’d like to connect.

Henry Clark · Answer

Lay out your master plan. Work with the lender to do a working line of credit versus just one SFH at a time.  Do you have pre existing assets you can help collateralize the working line of credit.  Offer that.

Dennis Muno · Answer

Yes, usually with the loan amount there will be issues finding lenders because lower loan amounts for some lenders are considered risk. However, there are ways to go about this. There are some commercial mortgage brokers that will assist you. They can connect you with help

How to get loans below 70k

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