11 Replies

Hello BP'ers

Has anyone had luck with a local bank or national that does refinance on small loans? I have four of my rental I brought in Huntsville Alabama that are under 50k and I need to adjust to hopefully a lower rate and a longer term since they come due in August

Hello Jerry,

You will do well finding smaller local banks to help you with the refinance.

If you need any assistance with your property management, please ask.  We manage houses in Birmingham, Huntsville and Montgomery.

@J Benoit  

Thanks J I figured it would be better to go with a smaller bank since I have a few small loans. As far as a PM I have someone who has been managing them for years and she has been good.


Good deal and good luck with the refi!

@J Benoit  

btw, since you work the Huntsville market how as the market been in the area for home sales. Most of my homes are in the 35810 area?

I don't have a lot of experience in the Huntsville sales arena.  Most of our investors are buy and hold.

As you know, it's not easy to find a lender to lend under $50K.  One option is to get a blanket loan.  Typically though, the blanket minimums are $500K, so you'd need more houses.  :-)  

I agree with @J Benoit  your best bet is to start approacing the local banks and credit unions with 1-5 branches.  They typically are less strict, but may require a banking relationship.  Be prepared to open an account if you find the right lender. 

@Jerry Robinson If you can qualify for an account, Navy Federal does small loans at 75% LTV, 5% interest, 20 year amortization with a 5 year balloon. Not crazy about the balloon, but they will do single properties and blanket loans for small amounts (my first loan was $31,500 with them.

Good luck to you!


@Ursula B.  

thank you for that information, I wonder do you have to be military to qualify. I will contact them to see what they offer. My first bank was great with small loans but sold mine to another company and it is a balloon which I am not a fan of but it was part of my learning experience with small loans.

On another note, How has the buy and hold been in your area. Never lived in NC but  I've heard parts NC are showing growth with new companies moving into the area.

@Peter K.   I found out how many banks don't loan under certain amount when I tried to refi a couple of years ago, but after listening to BP I start to find other types of loans are out their so that is one of my main focus to refi.

As for more house :), I always want more but even through I do have others now. The banks I have will not touch small loans.


@Jerry Robinson  There were several ways to qualify, including being active duty, a Veteran, government worker, contractor or a family member of anyone in those categories.  I think we all have someone in our families that would meet one of these categories.

I like the area of NC that I'm in because there are multiple universities and hospitals which is favorable to any rental market.  I tend to prefer condos over SFRs and usually have no trouble renting out my properties to decent tenants.  Like any market, competitive advantage is important, and I take the time to make my properties stand out from others.

Good luck in your search for a refi. Let us know what you find.

@Ursula B.  

sounds like you have your niche figured out, that sounds great thx for sharing. I'll let you know the outcome on the refi.

thx again

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