Lower end Loan limits?

Is anyone aware of lower end loan limits? For example, I want to purchase a home at $60k (I could pay all cash, but would rather not) and put 20% down. If it is not possible, is it because all the bs paperwork makes the process unprofitable for only $48K?

You may find some banks who won’t lend below a certain limit, but that’s their call. There are many banks out there who will loan $20K or so on a property.


Are you looking to buy an investment property or primary residence?

Either way, you should be able to go to a local bank. Local banks make smaller loans than mortgage lenders can usually do.

If you’re buying an investment property, does putting down 20% limit you to purchasing additional properties?

I’m currently in a similar situation. I have a 1400 sq ft SFR (3/2)
mls listed at 69k, offering 55k. I have the funds to put down 20%, but now the mortgage broker states the loan amount (44k) may be to low to find a lender willing to finance the deal. I already have a lease agreement on the property that will cash flow about $300 per month.

Do I have any other valid financing options? I have never used hard/private money to finance a deal, but I’m open to exploring that option now to get this deal done.

Please advise.

It sounds like you may have a great opportunity!

As Ben suggested, your local banks are more apt to loan on smaller amounts than the larger lenders. Gather up all of your data, go in, sit down and state your case.

Small loan amounts are not as profitable for the large banks. Of course, according to the news not many loans are. :shocked

Good Luck.

where are you purchasing, do you live by there?

strong income, assets, and credit

probably work with a local bank to get a commercial/business loan

So I have been trying to purchase my 1st investment property a
3/2 1450 sq ft SFR listed for 69k. I have the required 25% down payment, 780 credit score. My mortgage broker just informed me that I can’t qualify for noo conventional financing due to the fact that the loan amount is too low! The high fees involved with the loan would be considered predatory (3.6 points) and therefore can’t be funded.

Anybody out there have any suggestions on where I can turn for financing? I already had a lease agreement on this property that would cashflow me $300 per month. Please advise.

responded but you didnt reply back

This may be a stupid question. But what constitutes a “local bank”? Is it the number of branches? How small does a “local bank” have to be…to be a “local bank”?

A local bank means a bank that is state licensed not nationally licensed.

Ohhh ok…thank you. Let me follow that up with this question. Is there an easy way to sift through a list of banks that are local and non-local?

A couple options come to mind.


  1. open up the yellow pages and make calls for the next few days
  2. be frustrated with calls being misguided internally
  3. anxious when your messages dont get returned
    4 disappointed that the bank cant do what you need.


B. Work with a consultant and referral source who specializes with this.