Financing in Chicago>Question Details

Aar247, Home Buyer in Chicago, IL

Conventional Loan under 50k

Asked by Aar247, Chicago, IL Mon Feb 25, 2013

Has anyone used and successfully closed a transaction with a loan officer for less than 50K? If so, please provide their information.Thank you

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Answers

11
Your best option is to contact a local community bank in your area regarding financing this transaction. Understand that you may be paying a higher rate due to the smaller loan amount.

Good Luck,

Nick Nelson (NMLS #384413)
Mortgage Loan Officer
1st Step Mortgage Group
815-289-0880 - Phone
nickn@1stepmortgage.com - Email
1 vote Thank Flag Link Wed Feb 27, 2013
This not a problem at all for Ivis Avilez at BMO Harris Bank. Ivis is terrific. She specializes in these types of loan sizes. Call or e-mail her and be sure and mention that you were referred by J.D. Saxon.

Her contact information is below:

Ivis Avilez
708-341-9317
Ivis.Avilez@harrisbank.com

Good Luck!
0 votes Thank Flag Link Thu May 9, 2013
The loan officer that your Realtor suggests will probably be happy to do it for you and to keep his Realtor happy. Mine will....
0 votes Thank Flag Link Wed Feb 27, 2013
My colleagues are correct when they say that many banks don't want to fund mortgages for low loan amounts, since the costs outweigh the benefits from the bank's perspective. Banks are in the business of making money, mostly from loans and fees.

I would suggest that you inquire at a local credit union, since these organizations are usually not-for-profit organizations. This doesn't mean that they don't have to get a return on what they invest in mortgages, just that their mission is not driven by squeezing every last dollar out of the monies they hold.

To get a loan from a credit union, you'll need to become a shareholder. You do this by opening an account with the credit union. Many credit unions offer services to their shareholders at a lower rate (or for free) by comparison to banks. Unlike large banks (such as Chase, Fifth/Third, etc.) credit unions are locally-controlled by their shareholders. This gives them a local focus in their lending and service decisions.

There are many such organizations in Chicago. Pick one that's close to the target property, since credit unions typically serve the area immediately surrounding their location. Good luck with your purchase!

Regards,

Don Pasek, CIPS TRC, ADPR
Omniterra Real Properties
Chicago
0 votes Thank Flag Link Tue Feb 26, 2013
David's right.
new underwriting rules are about to go into effect, check with lenders regarding timing.
0 votes Thank Flag Link Tue Feb 26, 2013
These are very difficult to find. some of the professionals here should be able to help out. Have sat in several meetings now where it was made clear by the end of this year, almost no bank will be doing loans under $75k due to the legal restrictions around fees and the internal cost to procees loans under the new guidelines.
Get it done ASAP, and accept the fact the rate and fees will not be proportionate.
0 votes Thank Flag Link Tue Feb 26, 2013
everything is available if your willing to pay for it..
0 votes Thank Flag Link Tue Feb 26, 2013
I see a huge rate premium for low loan amounts as a disincentive to wanting to deal with that market. I had a guy recently putting down 25k with a $35k loan and his rate was 5%. It's like they are doing you a favor! Understand that the lender has the same costs and makes money on the margins.
0 votes Thank Flag Link Tue Feb 26, 2013
My web site has some lender references. Give them a call, but I have been told the costs involved on such a low $$$ makes it a poor choice.
0 votes Thank Flag Link Tue Feb 26, 2013
Call Tony Lupescu with Fifth Third. 708-351-6416. He has done a lot of these.
0 votes Thank Flag Link Mon Feb 25, 2013
LO's at mortgage banks may have their hands tied by the high cost loan provisions, but a local bank, i.e. CHASE and others should be able to do it.
0 votes Thank Flag Link Mon Feb 25, 2013
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