Is a Loan Under $100,000 Possible?

Author Message
Confused 1st Timer

Guest







Post Posted: Wed Jan 06, 2010 10:09 pm    Post subject: Is a Loan Under $100,000 Possible?
Like
Dislike

Hello Everyone!
I have a question. I have applied to two differnet direct loan companies and was denied. My score is low 620-630 range but was advised that this was not the reason I was denied. The prices of the homes I am looking into are under 75,000 some even $50,000. I was advised by the loan company that they wouldn't finance me because the loan amount is too low and that banks will not do a loan for under $100,000. Is this true? If so, what other options do I have?

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile Niicss
Niicss




Joined: 03 Oct 2005

Posts: 5499
Location: New Jersey
601.94 Dollars($)
Post Posted: Thu Jan 07, 2010 2:00 am    Post subject:
Like
Dislike

At times, loan companies will not be ready to give you a mortgage on a property which has low value. This is totally the discretion of the lender. You can check out with other local lenders to find out if they can help you with a loan. You can also seek a no obligation free mortgage consultation with the lenders of this community. This consultation will help you know whether or not you would receive a loan.
_________________
Good is the Enemy of Great.
Icon Mini Profile eric1
eric1
Community Expert
Community Expert

best lender badge

Joined: 04 Jan 2009

Posts: 1516

227.77 Dollars($)
Post Posted: Thu Jan 07, 2010 5:25 am    Post subject:
Like
Dislike

What you will find is the rate will often be higher or you will pay points or origination fees to get a loan below $100k
_________________
Eric JLow Down Payment, No PMI !
FHA RATE QUOTE
Mortgage Rate Quote
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12377
Location: bloomfield, ct
58.69 Dollars($)
Post Posted: Thu Jan 07, 2010 10:20 am    Post subject:
Like
Dislike

before you apply again, pick up the phone and call everyone in your area to see if they'll do the loan as you need it.
_________________
George M. Akerley
Mortgage Consultant
Word of Excellence- Writing/Editing/Proofreading
Icon Mini Profile tfaulhaber1
tfaulhaber1
Community Expert
Community Expert

best lender badge

Joined: 17 Dec 2009

Posts: 562

75.68 Dollars($)
Post Posted: Thu Jan 07, 2010 11:44 am    Post subject:
Like
Dislike

Wow! Try some of the mortgage consultants on this site. Someone should be able to help you and DON'T run your credit again.
_________________
Theo (Ted) Faulhaber
516-403-9116
516-634-4417
tfaulhaber (at) vanguardfunding.net
S Girl

Guest







Post Posted: Thu Jan 07, 2010 3:14 pm    Post subject: FHA loans
Like
Dislike

Look at FHA loans.
Best, try to see a mortgage broker. They can go with you through the process and they should know which banks would offer you money and which not.

FHA doesn't look at credit, plus you can put down 3.5% and you can get small loans. We just saw someone yesterday for a $60,000 loan. The rate in Champaign Il given by FHA was the same with the one given with a conventional loan: 5.25%
Icon Mini Profile howardnugent
howard.nugent




Joined: 17 Nov 2009

Posts: 39
Location: Wasilla, AK
12.89 Dollars($)
Post Posted: Thu Jan 07, 2010 5:37 pm    Post subject:
Like
Dislike

Smaller loans are typically less profit for the same amount of work. So when you're dealing with any cookie-cutter mortgage shop, they would just as soon not be bothered.

In addition, in my area, when the loan amount gets that low, the property isn't typically something that's even eligible for normal financing. A house can actually be too small in some cases.

Like George said, call everyone in your area, stay local. There will be someone who can help you. Your rate might be slightly higher than the published market rate. For example, I know that Wells Fargo charges around .75-1.00 points more for a loan under $75,000. Which could bump your rate 0.25% or so, or you could pay the 1 point ($800 on a $80,000 mortgage) to keep the rate the same.

_________________
Howard Nugent
907.352.5203
Confused 1st Timer

Guest







Post Posted: Thu Jan 07, 2010 6:59 pm    Post subject:
Like
Dislike

As a first timer, I don't know what I don't know. I'm learning as I go. Thank for all of your help! It is much appreciated.
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 12593
Location: Alaska
1309.02 Dollars($)
Post Posted: Thu Jan 07, 2010 10:28 pm    Post subject:
Like
Dislike

You're most welcome! Guest. If you've any queries, feel free to ask. Smile
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12377
Location: bloomfield, ct
58.69 Dollars($)
Post Posted: Fri Jan 08, 2010 7:57 am    Post subject:
Like
Dislike

ditto here, too, confused. keep asking questions, because that's how we learn after all. if i hadn't been asking back when i started in banking, i wouldn't have progressed to this point. not only that, but when we close our minds and think we know it all alread, we begin to regress. i think i may have to write something a lot more detailed about that last sentence - ya think?
_________________
George M. Akerley
Mortgage Consultant
Word of Excellence- Writing/Editing/Proofreading
SameBoat

Guest







Post Posted: Fri Jan 06, 2012 8:37 pm    Post subject: Something brewing as far as NEW FHA products/guidelines
Like
Dislike

I am in the same boat and can't get anyone to touch a refinance for under $100,000. Although USAA's mortgage branch told me just today that Pres. Obama has pushed some sort of FHA policy guidance out which addresses the $100,000 minimum loan requirement. The loan processor did not have details but told me to call back next week (Friday) and they should have better details on the guidance...BUT today I don't qualify.

Here is too hearing something POSITIVE next week. Like...YES...you qualify to refinance your current $50,000 loan which is killing you at 8.5% for a lower APR.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12377
Location: bloomfield, ct
58.69 Dollars($)
Post Posted: Fri Jan 13, 2012 1:49 pm    Post subject:
Like
Dislike

If there are no lenders offering loans under $100,000, then thousands (or more) houses will go unsold due to depressed values across the nation, the foreclosure crisis, etc. It's hard to imagine that it's that hard to find a lender willing to assist.
_________________
George M. Akerley
Mortgage Consultant
Word of Excellence- Writing/Editing/Proofreading
Phil

Guest







Post Posted: Wed Jan 23, 2013 1:10 pm    Post subject: VA loan
Like
Dislike

I was told sense my VA loan is only for 80,000 i would have to pay a higher interest rate. Is this true?
Icon Mini Profile adonis
adonis




Joined: 22 Oct 2005

Posts: 12179
Location: ALASKA
1313.94 Dollars($)
Post Posted: Wed Jan 23, 2013 10:43 pm    Post subject:
Like
Dislike

Welcome Phil,

Low amount of loans may have higher interest rates.

_________________
Procrastination is the enemy of your financial success
daniel goff

Guest







Post Posted: Wed May 08, 2013 5:35 pm    Post subject: condotel financed for 100,000.00,
Like
Dislike

we are looking for financing for a condotel that has a price of 55,000.00. is there any loans for that amount?
Ask question
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message Body
All times are GMT - 7 Hours
1, 2  Next  
Page 1 of 2

 
Delete this topic Move this topic Lock this topic Split this topic 

Page loaded in 0.824 seconds.