Financing in 94536>Question Details

Mark and Mir…, Home Buyer in Brentwood, CA

Small loans -- Any direct honest lender to recommend for a small loan ($67,000) and low closing fees?

Asked by Mark and Miriam, Brentwood, CA Wed Dec 15, 2010

The bank accepted my offer on a small condo (foreclosure), I will be putting about 25% down payment. My score is good (730). Any direct lender to recommend? Thank you.

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Myriam, Most lenders will do loans down to 30K to 50K; however, the issue is really in the pricing. There are lender add ons that will increase the rate and pricing on the loan. Additionally, the APR (annual percentage rate) is going to be pretty high because the closing costs are going to be high in proportion to the loan amount (the $400 appraisal fee is a much larger percentage on a 67K loan versus 300K loan).

In short, I have always been able to originate smaller loans; however, have also always felt the fees associated with originating them were just too high when I know I could refer the borrower to a local bank or credit union....and the borrower would save considerable funds. And, that is my recommendation to you: Start with a local credit union...they often portfolio (do not sell the loan on the secondary market) and you may find them very well priced. Next, try U.S. Bank (I can broker to them; however, that would add fees...not good, right???). U.S. Bank does a much better job than either BofA or Wells....and I would always recommend them over the others.

Best of luck to you! Certainly feel free to contact me if you have any questions that I can answer. Of course, you can keep me in mind for any referrals for larger loans that make more sense from a traditional mortgage platform.
0 votes Thank Flag Link Wed Feb 1, 2012
Hi myriam
we do small loans too please contact me
0 votes Thank Flag Link Wed Feb 1, 2012
Try Wells Fargo, Union City branch near union landing. Ask for lannie.
0 votes Thank Flag Link Thu Dec 23, 2010
Thank you Alice. I appreciate your time to answer my question. Myriam
0 votes Thank Flag Link Thu Dec 16, 2010
The bigger banks like Bank of America, Wells fargo and Compass Bank will do the smaller loans, but their fees are usually pretty high. If the loan amount you are looking for is $67,000, you should be ok to go to a regular lender and pay normal fees. Usually under $55,000 is where is starts to be a problem.
0 votes Thank Flag Link Wed Dec 15, 2010
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