I am in the process of starting a tiny house development and had some questions about a construction loan for it.
A lender I inquired with said that there is a 150k minimum appraisal to get a loan. These tiny houses, max will sell for 100k.
Does anybody know lenders out there with more leighway with lower minimum appraisal values?
Try your local bank, they tend to be flexible with most situations.
@Jason Boritz Not sure what that lender was talking about other than their own in-house policies. Move on elsewhere to different sources. Small banks and credit unions is all I would talk to.
I can try to help you but you need to give me some more details. How your loan package is put together is very important. Both feasibility, logistics and strategy of what you are doing is paramount.
Are you building them from scratch on a slab or are you moving in pre-built modular homes ?
What about the land? What's it like? city sewer? already developed?
@Jason Boritz could you not get a commercial loan to cover the entire development as opposed to trying to get a loan on a single house, one at a time time
@Jason Boritz Curious if you did find a lender for your project? I am currently involved in a similar project with partners and our hiccup is finding a conventional loan
I am still working on it but have a lender that seems interested and waiting to hear back. Send me a DM, curious to hear more about your project.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you