Looking for lending for deals under 50k

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Looking for lending for deals under 50k

Dwight Crosley
Member since 2023 · 1 post · 2 votes

I am an investor in the Birmingham area. There are a lot of deals in the area but many of them are under the 50k minimum most DSCR lenders have. Do anyone know of lenders that go under 50k? I'm open to any and all options.

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Reginald TrussPro Member
Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
8mo


Dwight — you’re not crazy. A lot of DSCR / investor lenders have minimum loan sizes because the fixed costs don’t make sense below that level (it’s common to see floors around $75k–$100k, and many long-term rental programs start around $55k+).

For deals under $50k, the plays that usually work are:

  1. Bundle / Blanket: finance 2–10 rentals together (or multiple closings) so the total loan amount clears lender minimums.
  2. Cross-collateralize: pledge another property (or equity) so the lender’s note size is larger and risk is lower.
  3. Local portfolio bank / credit union: many will do smaller balances if you’ve got deposits + relationship(especially in-market like Birmingham).
  4. Seller financing (or wrap / subject-to where appropriate): common on low-price inventory and often the cleanest path.
  5. Private money / short-term bridge then refi once you’ve got seasoning + stabilized rents (sometimes the bridge side also has minimums, but the structure can still work if you’re bundling).

If you want, drop the property type + strategy (buy/hold vs flip), target loan amount, and whether you have another property to cross-collateralize and I’ll tell you the cleanest route.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    11mo
    Quote from @Dwight Crosley:

    I am an investor in the Birmingham area. There are a lot of deals in the area but many of them are under the 50k minimum most DSCR lenders have. Do anyone know of lenders that go under 50k? I'm open to any and all options.


    Hey Dwight, 

    Maybe on a rehab loan. Minimum loan amount is $50k on a bridge loan, with no minimum value requirement. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    8mo
    Quote from @Dwight Crosley:

    I am an investor in the Birmingham area. There are a lot of deals in the area but many of them are under the 50k minimum most DSCR lenders have. Do anyone know of lenders that go under 50k? I'm open to any and all options.

     Late response on this one @Dwight Crosley - but I do utilize a few programs for Birmingham clients that can do the following:

    • No minimum purchase price

    • No minimum loan amount

    • 12.00% interest rate for 6-month loan term

    • Interest charged on drawn funds only - so you do not pay for a rehab budget that you haven't used yet.

    Reach out to me if that's still a need. Loan terms improve on programs with $50,000 minimum loan amounts (like @Erik Estrada mentioned) or even $75k-$100k minimum loan amounts. Just depends on what types of deals you are running into.

    Local hard money lenders can also be good options for flexibility on underwriting, but a nationwide HML is the logical next step.

    [email protected]417-605-2196
    0Reply
  • Reginald TrussPro Member
    Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
    8mo


    Dwight — you’re not crazy. A lot of DSCR / investor lenders have minimum loan sizes because the fixed costs don’t make sense below that level (it’s common to see floors around $75k–$100k, and many long-term rental programs start around $55k+).

    For deals under $50k, the plays that usually work are:

    1. Bundle / Blanket: finance 2–10 rentals together (or multiple closings) so the total loan amount clears lender minimums.
    2. Cross-collateralize: pledge another property (or equity) so the lender’s note size is larger and risk is lower.
    3. Local portfolio bank / credit union: many will do smaller balances if you’ve got deposits + relationship(especially in-market like Birmingham).
    4. Seller financing (or wrap / subject-to where appropriate): common on low-price inventory and often the cleanest path.
    5. Private money / short-term bridge then refi once you’ve got seasoning + stabilized rents (sometimes the bridge side also has minimums, but the structure can still work if you’re bundling).

    If you want, drop the property type + strategy (buy/hold vs flip), target loan amount, and whether you have another property to cross-collateralize and I’ll tell you the cleanest route.

    1Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 124 votes
    5mo
    Quote from @Dwight Crosley:

    I am an investor in the Birmingham area. There are a lot of deals in the area but many of them are under the 50k minimum most DSCR lenders have. Do anyone know of lenders that go under 50k? I'm open to any and all options.

    @Dwight Crosley

    That's a common issue in lower-price markets. A lot of DSCR lenders have minimum loan amounts or minimum property values, so sub-$50k deals often get declined even when the rent numbers make sense.

    For deals under $50k, I’d look more toward:

    • local community banks
    • credit unions
    • local private lenders
    • seller financing
    • portfolio lenders
    • small-balance commercial lenders
    • cross-collateralizing multiple properties into one loan

    If you have multiple Birmingham deals, packaging them together may be more realistic than trying to finance one small property at a time. 

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
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