I just ratified a contract on a SF for $54k and I wanted to finance but a lot of places don't finance such small loans. Anyone have a good lender for such small loans?

I Ran into the same problem with the house I'm buying now. The house is 55k with 20% down the loan is 44k. I got turn down a couple of times so I asked the realtor and he called in a favor to the guy he recommends. I don't think its that they can't its they don't make a lot of money doing small loans like that.

Thanks, unfortunately no one owes me any favors, haha. Probably the other way around actually.

I don’t know much about this, but what about a personal loan from your local bank or credit union?

Try your local credit unions. I have one near me that will go as low as 25k.

@Kevin Douglas I have been in a similar situation as well with purchasing small single family homes around that price margin. Getting a personal loan would be a great idea. This would let you secure the deal as a "cash" purchase. Meaning no appraisal required, you will also save some money in closing cost, and less waiting for the bank to close on the deal (typically banks want 30 days to close).  Keep in mind that the interest rate for a personal loan may be higher than a mortgage loan, but depending on what you plan to do with the property, speed may be in your favor.

If you really want to use a standard conventional loan, keep calling banks. Small banks typically will work with you, regardless of the loan amount. Just explain to them the situation and what your intent is, and that will help you great lengths. Best of luck!

I have looked into a company called SoFi that gives out personal loans. The goal is to close on a vacation rental in Mexico I'm currently under contract with. Does anyone have any experience with or feedback on this company? Or know someone who has used them in the past?

Thanks

Update, local named CresCom will be financing this deal for me

@Allan Rosso

hey Allan!  I used SoFi twice in the last year or so: student loan refi & recently to fund my personal residence renovation. I’ve since refi’d to pay it off (I needed funds faster than a refi due to a huge plumbing problem, ended up remodeling half the damn house - opportunity called!) but SoFi was incredibly easy to work with. Everything done online, a 47 second phone call (literally) to confirm everything, and funded extremely quick.

One thing to note: I’m pretty sure the terms of the personal loan state it cannot be used to purchase real estate, but I could be mistaken!  I don’t quite understand because you’re loaning me a personal loan, it’s for me to decide...

Either way, no complaints for SoFi.  Their CEO just did leave unexpectedly so don’t know what their future holds.

Originally posted by @Kevin Douglas :

I just ratified a contract on a SF for $54k and I wanted to finance but a lot of places don't finance such small loans. Anyone have a good lender for such small loans?

 MB Financial goes as low as $30k. Google them. Have no affiliation with them but many of my clients have used them to buy properties in this range. Note they are slow....Very slow but beggars can't be choosers.

Thanks James!

@Jared Sanderson I appreciate the information. I ended up applying last night because I really need to finish a deal around the end of the month. Your reply makes me feel better about deciding to go through them. Thank you!

@Kevin Douglas - how did the financing work out with the company you mentioned, CresCom? Anyone else finance small deals (especially deals where the SF is unlivable but the acreage alone would be worth the money?