How to get financing for 20K loan?

3 Replies

Hi all,

I am under contract on a seasonal property that I have hopes of turning into an airbnb rental. I have a signed contract for 35K and planned to put down 15K and get a mortgage on the remaining 20K for 10 years.

Being that the property is seasonal and has no utilities as of now most banks do not want to make a loan on it. I was close to securing funds from one bank but because I am self employed my tax accountant has tried to minimize my income and set up everything through an LLC. This unfortunately has lowered my income significantly on paper making my debt to income ratio too high for their liking.

At the 4.875% rate they were going to give me on the 10 year it would have been around 211 for monthly payments which is well within my means and have a credit score of 792. One day of work for me more than pays for the monthly loan. I have no debt besides a 220/m car loan with 3-4 years left on it. 

I am trying to figure out what my next steps are. Hard money lender seems like the next option. If anyone on this forum could direct me to someone who could help it would be much appreciated. The property is located in a vacation area in the Adirondacks in Upstate NY.

- Kurt

You'd have to find a portfolio lender to lend that small of an amount.  But as was mentioned, you'd have much more luck with a personal loan - might not get the 10 yr term though.