DSCR LOANS 70k

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DSCR LOANS 70k

Logan Short
Investor · Tallahassee, FL · Member since 2020 · 7 posts · 2 votes

Hey I am purchasing a townhome for $70,000 and am having trouble finding lenders that will lend on property with such a low purchase price. Has anyone been able to find a lender for something like this. The property is in north Florida and is rented for $1,100. 

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
4mo

Logan,
Looks like several folks here can help.

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  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    4mo

    You should be able to find an option down to $50K on DSCR!

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4mo

    Hi Logan - most DSCR Lenders will have a minimum of $100k or $75k but there are a few out there (typically, you'd need to find a broker with lots of options and outlets) that can go down to around $50k or so

    [email protected]
    Harpoon Capital512 Reviews
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    0Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 651 posts · 314 votes
    4mo

    Hey Logan,

    I work with one that will go down to a loan of 50k on DSCR. The fees are always the kicker here as you run into minimum fees that surprise some folks (usually around 5k or so).

    Happy to run through the scenario if you have some time?

    Good luck!

    [email protected]417-427-2612
    0Reply
  • Frankie VozziBusiness Member
    Member since 2025 · 327 posts · 82 votes
    4mo

    You'll see that come up a lot on lower-priced properties, A lot of lenders have minimum loan amounts (usually $75K–$100K+), so even if the deal works, it gets filtered out. For deals like that, what usually matters is: Strong rent relative to price (which yours has) Clean property condition, Simple structure, I work with investors on DSCR and rental financing, and I've seen some options still work in that range depending on how it's set up.

    Are you planning to hold this long-term as a rental?

    [email protected]516-888-7750
    0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    4mo

    Logan,
    Looks like several folks here can help.

    1Reply
  • Ali Najjar
    Lender · NJ · Member since 2025 · 50 posts · 23 votes
    4mo

    Hey Logan we have a DSCR loan product with no minimum loan amount if you want to dm me feel free to.

    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    4mo
    Quote from @Logan Short:

    Hey I am purchasing a townhome for $70,000 and am having trouble finding lenders that will lend on property with such a low purchase price. Has anyone been able to find a lender for something like this. The property is in north Florida and is rented for $1,100. 

    Happy to connect on this one.
    0Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 494 votes
    4mo

    There are DSCR loan options down to a $75K appraised value and a $50K loan amount. There might be some lower than that but it's helpful to do your research on DSCR mortgage brokers or lenders and find one who has a good reputation. Experienced DSCR mortgage brokers can help with loan options as they have relationships with reliable lenders who don't advertise directly to the public who reliably fund different types of DSCR deals such as lower balance, rural, short term rental, non warrantable condos etc besides regular DSCR deals.

    DSCR lenders are legally able to change DSCR loan rates and terms all the way up to closing and I have heard more than once from clients that happened to them- especially after you have put money into the deal such as having paid for the appraisal.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4mo
    Quote from @Logan Short:

    Hey I am purchasing a townhome for $70,000 and am having trouble finding lenders that will lend on property with such a low purchase price. Has anyone been able to find a lender for something like this. The property is in north Florida and is rented for $1,100. 


    You can still finance this with a DSCR loan, it will just be very expensive..

    Does the property need any rehab? 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Irv ArreolaPro Member
    Lender · Los Angeles CA · Member since 2026 · 25 posts · 3 votes
    2mo

    The DSCR itself isn't your problem here it's the loan size brotha,

    a $70K purchase at 75–80% LTV you're looking at a ~$52–56K loan, and a lot of DSCR shops set minimum loan amounts around $100K–$150K because the fixed costs of originating and servicing a small loan don't pencil for them.

    A few things that might work for ya: 

    (1) look for lenders that specifically advertise low minimums some go down to $50–75K loan amounts, usually at a slightly higher rate..

    (2) Small local banks and credit unions in that FL market they'll probably keep a $70K investor note in-house when the national DSCR lenders won't. For what it's worth, your numbers look fine on paper with $1,100 rent against a ~$52K loan should put your DSCR comfortably above 1.0 even at today's rates, so once you find a lender whose box fits the loan size, this should underwrite cleanly in my opinion.

    And hey if you plan to buy more of these, ask about a portfolio/blanket loan that bundles several low-value doors into one loan to clear the minimum i your trying to get acclimated 

    [email protected]424-599-0402
    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Logan Short:

    Hey I am purchasing a townhome for $70,000 and am having trouble finding lenders that will lend on property with such a low purchase price. Has anyone been able to find a lender for something like this. The property is in north Florida and is rented for $1,100. 

    @Logan Short
    A lot of DSCR lenders have minimum loan amount or minimum property value requirements, so that may be the hurdle rather than the property itself. I'd look for portfolio lenders or investor-focused lenders that offer small-balance DSCR programs. With $1,100 in monthly rent on a $70K purchase, the cash flow could be attractive if you find the right lender.

    786-656-0387
    DreamPoint Capital
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    0Reply
  • James Driscoll
    Banker · MA · Member since 2026 · 120 posts · 31 votes
    2mo

    Low loan amounts are a genuine hurdle in the DSCR world — most lenders have minimums around $75K–$100K, so you're right at or below the floor for a lot of shops. That said, it's not impossible; you just need to be more targeted about who you approach.

    A few things worth knowing as you shop this:

    **DSCR math first.** At $1,100/month rent and a purchase price of $70K, your PITIA (principal, interest, taxes, insurance, and HOA if applicable) needs to come in at or below that $1,100 for a 1.0x DSCR — most lenders want 1.0x minimum, some prefer 1.1x–1.25x. At current rates on a small loan balance, the monthly payment will be proportionally higher per dollar borrowed (lenders often charge add-ons for small loan amounts), so run the numbers carefully before assuming it pencils.

    **What to look for in a lender.** You want a DSCR lender with a loan minimum at or below $75K — some portfolio lenders and smaller non-QM shops do go there. Community banks and credit unions in Florida that hold loans in-house are also worth a call; they're less beholden to secondary market minimums.

    **The townhome flag.** HOA dues and whether the project is warrantable can affect DSCR eligibility too — worth confirming that up front.

    After 31 years in the mortgage business working with DSCR deals, my honest take is: the deal can work, but the margin is thin at this price point and rate environment. Model it conservatively before committing to closing costs and fees.

    Happy to talk through the DSCR structure if that's helpful.

    ---

    Jim Driscoll

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo

    Uwm goes down to $50k but be aware fees are gonna be high on a percentage basis 

    7e investments53 Reviews
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  • Avi Weichman
    Lender · Member since 2026 · 19 posts · 2 votes
    2mo

    I'm a lender/broker and was struggling to help a client find low balance DSCR lender preferably one that can do it as a portfolio

    if you do it or know someone let's connect (even if you can't do it as a wholesale setup shoot me a line as I try to operate as a go-giver broker)

    Thank you!!

    Avi

    0Reply
  • Carl Davis
    Lender · AZ · Member since 2022 · 148 posts · 95 votes
    2mo
    We do portfolio DSCR loans but UWM is the only lender I know that does lower than 100k purchases.
    0Reply
  • Avi Weichman
    Lender · Member since 2026 · 19 posts · 2 votes
    2mo

    Just to clarify my client is looking to do a cashout refi.

    0Reply
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