Chicago Lenders Specializing in Loans Under 100K
Hey guys,
I've been running into the same issue when attempting to qualify for a loan under 100K: it's too small of an amount. I'm looking at properties with a purchase price of 60-75k. I've talked to some lenders (hard money/conventional) who I was referred to, but again, their mins are too expensive for what I am trying to accomplish. I've got the 20% downpayment for a property in the 60-75K range and need the financing to complete the transaction. My idea was to use a hard money lender for the entire rehab, but not for the home purchase. I've already tried to find a 203K loan to house hack, but they're just not around due to Covid and I'm not really looking for an FHA loan obligation, tbh.
If you have any insights or recommendations as to any lenders or strategies on working out the financing I would appreciate it! I’ve been analyzing deals like crazy and am hoping to get a pre-approval so that I can take my journey to the next step: ACTION! A bit more about what I’m looking for:
- SFH fix and flip
- South Chicago Suburbs
- purchase price 60-75K
- rehab ~70k
- ARV ~185 to 190k
Thanks!
Originally posted by @Timothy Pauldon:Hey guys,
I've been running into the same issue when attempting to qualify for a loan under 100K: it's too small of an amount. I'm looking at properties with a purchase price of 60-75k. I've talked to some lenders (hard money/conventional) who I was referred to, but again, their mins are too expensive for what I am trying to accomplish. I've got the 20% downpayment for a property in the 60-75K range and need the financing to complete the transaction. My idea was to use a hard money lender for the entire rehab, but not for the home purchase. I've already tried to find a 203K loan to house hack, but they're just not around due to Covid and I'm not really looking for an FHA loan obligation, tbh.
If you have any insights or recommendations as to any lenders or strategies on working out the financing I would appreciate it! I’ve been analyzing deals like crazy and am hoping to get a pre-approval so that I can take my journey to the next step: ACTION! A bit more about what I’m looking for:
- SFH fix and flip
- South Chicago Suburbs
- purchase price 60-75K
- rehab ~70k
- ARV ~185 to 190k
Thanks!
I'll drop you a PM. We know lenders who are doing 203K and COVID has not affected their activity. We also know some lenders who will do deals below $100K.
-
Real Estate Agent Illinois (#475. 112189)
- 3126817487
- https://www.chicagodiscountproperties.com/
doesn't seem complicated to me.
70K purchase - Put 14k down and borrow 56K
Borrow the 70K rehab for a loan of $126K.
With an ARV of 180K this should be no problem.
@Timothy Pauldon If the property is in livable condition, no health and safety issue we will be able to do the loan. Due to COVID-19 203k loan is suspended for now.
@Harjeet Bhatti The FHA 203k Loan is NOT suspended. While many of the smaller FHA lenders may have temporarily stopped doing the FHA 203k, there are many, many lenders still originating and funding 203k loans.
@Timothy Pauldon Most lenders don't want to do loans <$100k because they just don't make enough money doing them and sometimes the closing costs exceed the allowable %. Maybe consider doing a conventional rehab loan like the Homestyle or CHOICERenovation to increase the loan amount and get access to cheaper interest rate compared to a HML.
@Crystal Smith This would be awesome! Both viable options at this point in time. I look forward to getting connected.
"Lenders Specializing in Loans Under 100K"
That's like asking for a tenant who "specializes" in paying only partial rent, or asking for a real estate investor who "specializes" in properties with low cap rates and low rents and low appreciation, just FYI...
Hey, they're out there. Most snobs won't accept that or refer you to them, but I've found 1 or 2.
Get out of here with the negativity of "your own experience" and help find the Dimond in the rough, we have 50 state of lenders to look in.
Try: (under $100K loans and not great/ but not awful rates)
CHARLIE HILLEMANN | Stifel Bank & Trust
@Quaid Cde Baca:That part!
Yeah they are definitely out there. If I listened to all the people on BP I'd never have a deal. It's localized. If I find one in Chi I'll share it. I've found one in the markets I've invested in. But, I'm currently looking for one in Memphis and in Jacksonville.
@Jay Sandefur Jr Hey! Me too. Searching in Memphis, Charlotte, and Columbus. Damn hard. I think credit unions might be the next search I'll have to do. fingers crossed for better luck there than general lenders. I'm 2 for 15 so far, ha!
@Timothy Pauldon I was just able to get a loan with Guaranteed Rate for a $67,250 house and with 20% down the loan was only $53,800. I would check with them for your property they do investment loans and are able to lend in most states.
Quote from @Brian Stinson:
@Timothy Pauldon I was just able to get a loan with Guaranteed Rate for a $67,250 house and with 20% down the loan was only $53,800. I would check with them for your property they do investment loans and are able to lend in most states.
Who did you use?
@Noah Dreizer I think he used https://www.rate.com/#.