Real Estate Agent · Bronx, NY · Member since 2017 · 14 posts · 3 votes
Good Evening
I'm interesting in finding a local lender in Shreveport with favorable terms. Credit unions and low downpayment options preferred. For mortgages less than $50k. Thank you for your input.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
2y
David,
You can also use a personal loan which is generally easier and goes up to $50K. Banks and CU have something called "High Cost" rules which means a mortgage under $75K generally is not large enough to include or finance their hard costs plus fee's.
Some DSCR lenders offer a $75K minimum after down payment but rates are usually above 9.75% even with good credit and carry a 2-3 year prepayment penalty. It is easier to buy a home in a price range of $100K+ range that either has enough equity after renovations or appreciation to pull out a LOC or cash to use for the down payments or to purchase "All cash" for those deals under $75K.
problem with low loan amounts is you will be maxed at 75% LTV and doing a cash out refinance on a $50K home is going impossible due to most lenders having a minimum loan amount. Great to buy homes for $50K if they cash flow but just keep in mind your setting yourself up for a difficult path if you plan to take any cash out down the road based on minimum loan size/Max 75% LTV guide lines.
I'm interesting in finding a local lender in Shreveport with favorable terms. Credit unions and low downpayment options preferred. For mortgages less than $50k. Thank you for your input.
Hey David, I have some local lenders in Shreveport that play around the 50k mark. I'm also a private lender; send a message and I'll get you connected with a few of the bankers I work with in Shreveport