need money

[rashidi]

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

[carlittle]

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.

[rbaxter]

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

[cskutt]

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

[Mdhaas]

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.

[hammertime]

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.

[blueprints1971]

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

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

[JeffInCT]

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.

[ShaunG]

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.

[4EEM]

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.