Need help sourcing DSCR loan for condo

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Need help sourcing DSCR loan for condo

Paul ZofsakPro Member
Investor · Cypress, TX · Member since 2013 · 118 posts · 15 votes

Condo ARV is about $90-95K so loan would be less than $75K. All the lenders I have talked to aren't interested in anything with a value under $100K, or will loan for less than $75K. Anyone out there can point me to someone that will lend under these conditions?

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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 660 posts · 319 votes
    9mo

    Hey Paul,

    It can definitely be tricky below 100k and even with condos where you might run into minimum square footage amounts as well as if it is warrantable, or non-warrantable (not to mention dealing with the Condo Association)

    That being said, I do know of a program that could help, just shot you a DM, happy to help if I can.

    Good luck!

    [email protected]417-427-2612
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  • Christian Wamsley
    Investor · Augusta · Member since 2024 · 33 posts · 25 votes
    9mo

    Hey Paul,

    You’re not alone on this — sub-$100K condos are tough, especially once lender minimums, condo warrantability, and association guidelines come into play.

    I’ve run into similar constraints before, and in a few cases the solution ended up being more about who was underwriting rather than the product itself. There are a handful of lenders/partners that will still look at smaller balance DSCR deals if the numbers and condo structure make sense.

    Happy to compare notes or point you in the right direction if you’re still working through it. Sometimes a quick second set of eyes helps uncover an option that didn’t show up at first.

    — Christian

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  • Andrew Lee
    Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
    9mo

    Hey Paul, as others have mentioned, $100,000.00 or below is hard for lenders. You also want to make sure the condo is warrantable as that could also be a deal breaker once the loan goes into underwriting. My recommendation would be to find a warrantable condo of $150,000.00 or above as that will be the minimum for majority of lenders (as your down payment will also reduce total loan size). 

    *A warrantable condo is a condo unit in a project that meets Fannie Mae / Freddie Mac guidelines, which means conventional lenders are willing to lend on it.

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 517 votes
    9mo

    There are condo loans that will go down to a $75K appraised value and a $50K loan amount depending on the LTV and borrower credit score. Seasoning or waiting periods vary between the last transaction and the new loan. The options will depend on credit score, LTV and if the condo is warrantable or non warrantable among other things. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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  • Frankie VozziBusiness Member
    Member since 2025 · 385 posts · 94 votes
    9mo

    Paul, this is a common challenge with lower-value condo assets. Most DSCR lenders, operate with a minimum loan amount of approximately $75,000, as loans below that threshold often do not support origination and long-term servicing costs.

    Given an ARV in the $90–95K range, the resulting loan amount would likely fall below most lenders' minimums. In this case, alternative approaches such as partnering, combining multiple properties, or working with lenders that specialize in small-balance loans may be worth exploring.

    [email protected]516-888-7750
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  • Andrew Zamboroski
    Lender · Member since 2021 · 498 posts · 131 votes
    9mo
    Quote from @Paul Zofsak:

    Condo ARV is about $90-95K so loan would be less than $75K. All the lenders I have talked to aren't interested in anything with a value under $100K, or will loan for less than $75K. Anyone out there can point me to someone that will lend under these conditions?

    Paul, is the condo warrantable? We have done loans down to 50k on similar ones, but if it is non warrantable the ltv is generally lighter across the board (depending on the reason).
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    8mo
    Quote from @Paul Zofsak:

    Condo ARV is about $90-95K so loan would be less than $75K. All the lenders I have talked to aren't interested in anything with a value under $100K, or will loan for less than $75K. Anyone out there can point me to someone that will lend under these conditions?


     If the condo is warrantable, you can finance this. Minimum Loan amount is $50k 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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  • Matthew Bernal
    Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
    8mo

    This is a pretty common issue at that price point. A lot of lenders have minimum loan sizes because the fixed costs of underwriting, servicing, and compliance are almost the same whether the loan is $75K or $300K, so smaller balances just aren’t attractive to them even if the deal itself is solid.

    When I have seen investors run into this, they usually end up exploring local banks or credit unions that keep loans in-house, looking at portfolio or blanket loans if they plan to scale, using private capital for the smaller balance, or going all-cash (or close to it) and then refinancing later once the property has some seasoning and a track record.

    Is this a rental or a flip, and are you open to holding it a bit longer if refinancing ends up needing more time?

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