I am an experienced real estate investor, and looking to get a 1st mortgage for an investment property. The problem that I am running into is the amount I want to borrow is only $40,000. No traditional lenders want to touch that (some put a floor at $50K, most seem to be at $100K), but I am also not willing to do hard money, because I am looking at this as a long term investment.
Any suggestions?
Try a smaller local bank. We’ve borrowed $20k several different times for cheap houses. I had some tell me they wouldn’t lend less than 50k. I thanked them for their time and told them I couldn’t change my business model to fit their lending criteria. What about finding a couple houses you could put together to get the loan amount higher? We’ve done that several times too.
If you have good credit and verifiable income, you might be able to get a signature loan for that small an amount.
I think you should try to apply for a usual secured bank loan instead of taking mortgage. Besides, the terms and conditions of secured loans can be even softer than home loans. If your credit score is good you will have no problems with your application. Well, of course, it’s up to you to decide. Good luck!
I think you should go for taking a loan from a bank as it would be the most fair deal. You should also consult someone knowledgeable in this field before taking any decision.