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I am interested in buying a condo as an investment property but am wondering where I can get a small mortgage. I would making a down payment of 25-30K on a 60-65K property so I'm only talking about a 35 - 40K loan. I plan to check with my credit union but wondered if there were any other good possibilities.
Worst case, I suppose I could only put 20% down, borrow 50K and then immediately pay down the principal after getting the mortgage. That's assuming it would be easier to get 50K loan than a 25K.
A Credit Union or small local community bank! Mortgage companies are willing to lend at the lower loan amounts. However, the rates are usually higher as they tend to be higher risk loans.
I am interested in buying a condo as an investment property but am wondering where I can get a small mortgage. I would making a down payment of 25-30K on a 60-65K property so I'm only talking about a 35 - 40K loan. I plan to check with my credit union but wondered if there were any other good possibilities.
Worst case, I suppose I could only put 20% down, borrow 50K and then immediately pay down the principal after getting the mortgage. That's assuming it would be easier to get 50K loan than a 25K.
Since in Colorado you can't find homes or condos in the under $40K price range I would look to national lenders online. But keep looking around when I was looking for a home I did find some lenders that would lend between $25K and $50k and this was in an area where you couldn't find a home in that price range. Mortgage financial groups with loan portfolios may be able to help.
I would also look into suing Bank of America or at least report them to the proper regulatory agency.
But like you said, you can get a mortgage for the full amount. Put 20% down and then after closing pay another $20K and you have your $25K loan.
I would also look into suing Bank of America or at least report them to the proper regulatory agency.
But like you said, you can get a mortgage for the full amount. Put 20% down and then after closing pay another $20K and you have your $25K loan.
What does bank of America have to do with anything?
Unless that mortgage allows a free recast, his payments will still be based on the original amount of the mortgage. I doubt that is what OP has in mind.
What does bank of America have to do with anything?
Unless that mortgage allows a free recast, his payments will still be based on the original amount of the mortgage. I doubt that is what OP has in mind.
That was a mistake I was answering another thread and I posted in the wrong window.
My loan is what is commonly referred to as a "baby loan", meaning it is for a small amount. When I wanted to refinance a few years ago, I talked to several lenders, and they all either wouldn't do the loan at all, or else were a large premium on the interest rate. I ended up going with a local credit union. When I asked them what size mortgage they considered a baby loan, they said they don't have a limit on that, and would loan on as small an amount as I wanted for the same rate.
That being said, my loan is still like $80,000, not the $35,000 you are talking. That may still below the limit for some credit unions.
I checked with my credit union and they only do re-fi's but surprisingly First Bank (semi-local) does do mortgages with no minimum. They did require the property to be conforming if it is a condo. Otherwise the max term is 10 years for a fixed rate (which would probably be ok also). I plan to check some other credit unions and compare rates.
I checked with my credit union and they only do re-fi's but surprisingly First Bank (semi-local) does do mortgages with no minimum. They did require the property to be conforming if it is a condo. Otherwise the max term is 10 years for a fixed rate (which would probably be ok also). I plan to check some other credit unions and compare rates.
Check to see if it has a prepayment penalty or not. Most 30 years don't, I don't know about the 10 year ones.
Plus they may not have a minimum for a 10 year loan but on a 30 year one they might.
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