Finding low amount financing w/ average credit

I am ready to begin investing and have located several properties-in-distress for bargain rates (under 20k). These homes are appraised for 2+ times the asking price at As-Is condition, so there is instant equity upon purchase. I plan to rehab and use as rental property. My probelm is finding financing for such a small amount (15-20K at a time) with average credit, FICO 615. Does anyone know how I should deal with this special financing situation? Any & all responses are appreciated.

I know a couple of people who started using credit cards. They bought their first couple of properties using the 0% introductory offer rate on their CC’s, and then paid the cards off when they sold the properties. They used the remaining cash from the equity to use for their next purchase. Your credit score will probably take a hit doing this, but it’s a quick way to get in the biz with good credit and no cash reserves ,especailly if the properties as this cheap. Just one idea.

Thanks for the reply… however, I did not want to got that route. I need to save my credit rating as much as possible as I am also in the process of starting a biz.
Are there any lenders that offer low amount mortages like this? If not, where should i look next, HML?


Lots of banks will lend smaller amounts of money. Try the smaller local banks in your community. Don’t overlook the credit unions.

Other options:

(1) If you own a home, a HELOC

(2) Signature loans – a bit higher interest but maybe worth looking at

(3) Loans against insurance policies

(4) Loans against retirement accounts that you may have

(5) Loans against vehicles that you own outright

I use a local bank here and, as long as my properties cash flow (they ALL do!), the bank will make the loan. My loans are a bit more (in the $50Ks)…

Also, try posting in the "Financing, Hard Money Lenders, Credit, Qualifying " area. That’s where the money folks hang out!


kdhastedt hit the nail on the head. You will need to be creative in gaining financing.

As previously mentioned, Wholesale Lender’s are looking for loan amounts greater than 50K. Small loan amounts tend to be a hassle for them to resell.

Would this be possible… getting financing for 2 homes, on one mortgage, that total $50-60k together if the equity in the homes at the time of purchase are 50+ % ? I’ve had 1 HML offer to do this but their rates were wayyyy too high. I know this would be way difficult, just trying to get creative and make it as attractive 2 the lender as i can. It really would be a good deal all around.

some local banks will do “blanket mortgages”. This type of mortgage includes multiple properties on one mortgage.