Banks won't loan under $50K now, what?

Financing, Hard Money Lenders, Private Money
1

Hi,

This is Salemgurl (gotta change that name now that I no longer live in salem, mass). Guess I should call myself, St. Louie woman! :biggrin

Anyway,

The house we want is under $30k.
*we don’t have the cash in full for this amount!
*We have some money saved for it.
*Banks won’t loan that low of an amount anymore (we’ve been told).

So now what? :help

2

Check smaller banks. Regions has a policy of not loaning under 50k where I am, but I can get small loans (10-25k) for investment property all day long.

3

hard money loan would be your answer. what is the value of repairs and estimated after repair value?

4

Small local bank where they keep the loan in house. But you may pay 10% for that money, or a variable rate, and it could be short term.

Furnishedowner

5

You have to call up a bunch of banks and see what they say. They usually don’t post the info on the web. Last year I had someone from BOA tell me they could loan under 50k. Probably depends based on the branch. It’ll only take a few minutes to call each one. Also make sure to state it will be an investment loan as well and you should get their rates and other info such as down payment required,etc.

6

Screw hard money. :banghead

The posters are correct when they say hit the banks. But you gotta visit with the small local banks or credit unions. They can do in house loans very easily on 3-5 or 7 yr arms for that small of amount. You could also buy the house with a credit card if you have a line that big. You could look for private money. Don’t call these banks btw. You need to stop in and visit with them face to face.

If you don’t have the credit to do so then go the private money route or credit card route.

Nate-WI

7

Nate, you can’t screw what you can’t get into bed.

Sometimes, HM is the only alternative to people with less than perfect credit.

8

Seller financing.

9

Why not simply build business credit and get the $ within 3 months? If you don’t know what business credit entails then you may be missing out…Google and YouTube it and you’ll be amazed about how ppl go about biz the wrong ways these days…

10

Hello, i read your response and was curious about something. I have excellent business credit but not enough revolving credit. Do you know of anyone that can help me get started in my situation?

11

Checking with small banks, as many posters have suggested, is probably the way to go. One more suggestion: Check with a mortgage broker. It’s not uncommon for some mortgage brokers to have have dozens of relationships with different lenders. You may find that a mortgage broker is able to quickly find the lenders who offer loans under $50K.

12

I second not using a hard money loan. Call up the regional banks and credit unions and see what they can do for you. Another option is to save until you can afford it. $50k isn’t that much and you’ll have no interest to worry about. Housing isn’t going anywhere anytime soon. :wink: Even if it does, you’re buying on the way up. :slight_smile:

13

HI,

Seller financing will help you as they provide very easy and convinient plans.

Thanks

14

Outside the box thinking:
Just because your using it to buy a home doesn’t mean it has to be a home loan.
Do you have anything of value to use as collateral? HELOC on another property? Loan on a car you already own?

15

Im curious how much the house’s arv is? If they wont give you a 30,000 will they give you 50,000 loan?