Loan amount

8 Replies

I'm from the Metro Detroit area and I'm considering purchasing my first rental. Talking with the bank today my broker told me that in order for him to do a loan the amount had to be at least 60k. After my 20-25% down. I've dealt with this broker on several other deals and have always been satisfied. I'm just curious if banks will no longer loan less then 60k on a investment property or is this just the mortgage company I'm dealing with? Any feed back would help I'm new to Realestate investing. 

It's been that way for a while at most banks. You can try smaller banks by picking up the phone and trying until you find one that will. Level One Bank might work with you. 

New lending regulations haven't helped. It costs more to process every loan so smaller ones are proportionately less profitable. It is just a matter of looking around. different lenders different rules. 

It varies bank to bank.  I've dealt with banks that had $50k minimums, $75k minimums, and no minimums.  So try calling around to other lenders.

Just stumbled on this issue myself in looking at lower priced markets. I can do certainly do cash deal, but then I'm locking up funds for a year before I can cash out refi. Chris England did you ever end up finding a lender to work with your lower loan amount?

Originally posted by @Cliff H. :

Just stumbled on this issue myself in looking at lower priced markets. I can do certainly do cash deal, but then I'm locking up funds for a year before I can cash out refi. Chris England did you ever end up finding a lender to work with your lower loan amount?

 Give @jerrypadilla a try. I'm currently working with him now. I believe he can go as low as 30k. He is on Bigger Pockets.