need money

i have a contract on a house for 30k. what i’m finding out is that traditional bank won’t lend less than 50k. why is that and is this a hard money situation? thanks in advance.

rashidi :-\

Either the property isn’t worth the money you have it under contract for or more likely, the banks are limited on their profit by laws that govern lending.

This is common for many lenders, especially traditional banks. Some lenders have no minimum, but most do.

Go to a mortgage company instead of a bank. They have lenders who will finance lower loan amounts.

Low loan amounts are becoming increasingly difficult to find funds for.

Regulation Z Section 32 (HOEPA) limits the amount of points and fees that can be charged.

N/O/O residences and second homes are “exempt” from Section 32. However, some of the Major Lender’s are choosing to “voluntarily” monitor the percentages and control the amount of fees charged.

did you ever find the financing for the small loan amount?

I am having difficulty also finding funds for loans under 40k.

I have talked to a couple of Brokers who told me that, “if you can find someone who can do these loans to lock them in, pay them a decent fee and keep them around. Most brokers do not have the lender’s or the time.”

I have found one that I am really happy with, but, am always keeping my options open. ;D

We will finance 30k and up. Let me know if you are still looking for a lender.

I deal in lower priced condos and run into this all the time.
Economically, why would someone want to do the same work for 1/10 of the income?

Countrywide and Washington Mutual may do it.

Fortunately, Some lenders are visionary and realize that today’s 30k guy might be tomorrow’s 300k guy. KEEP LOOKING! You will find.

I have a few sub-prime lenders that will go down to 30k but that is the minimum. I don’t know of any that have no minimum.

I work with some folks that have no min. They will even finance rehab costs if you have a personal residence with some equity in it.