Financing in 85254>Question Details

Jo Webber, Home Buyer in Hell's Kitchen, New...

The loan I want is too small, who lends under $50k?

Asked by Jo Webber, Hell's Kitchen, New York, NY Sat Aug 21, 2010

This is frustrating. I have found a nice thownhouse for about $35k. I am prequal for $90kFHA but the complex won't approve for FHA. The townhouse will quilaify for HomeStepsRevovation, but no lenders will do that small of an amount for Renovation loans. Straight HomePath I can get easily.
I don't qualify for conventional due to not having enough credit cards (1 CC, 1 AMX) i have no debt. I have enough in savings for a convetional loan with 10% down. Could do 20% but want some cushion.

So, how do I buy the townhouse?

0 votes Share Flag Financing in 85254

Help the community by answering this question:


Try calling Rick Guilette at Midfirst Bank, they do a 1st position HELOC and on your loan size the payment should be next to nothing. Ricks number is 480-682-8433. Tell him I told you to call. He also has a pre paid credit card that reports monthly to the credit bureaus and the minimum is only $300 to get started. This is a portfolio loan program. Good Luck.

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
Apply Online:
Web Reference:
1 vote Thank Flag Link Sat Aug 21, 2010

I would be happy to look at this deal myself. Also, I have a network of other investors who do private notes and asset based lending. Give me a shout if you are still in need through here.

0 votes Thank Flag Link Thu Aug 23, 2012
I have several Realtors bringing me deals in the 30K-40K range. Due to federal regs, the fees associated with the loan process make it too costly to finance properties under 60K.
I would suggest looking for a hard money lender (private investor) and offer a higher interest rate (10 - 15%) which you can pay down early. You could amortize 20 - 30 years, with a 5 - 10 year call.
Run an ad in Craigslist.
0 votes Thank Flag Link Tue Jan 18, 2011
We may be able to help you. I am confused about why you don't qualify for a conventional loan, what is your actual credit score? We do have a system that can build your credit score if needed.

Please call me directly to discuss your options

Brion Crum
Pinnacle Wealth, llc
602 3265-5360
0 votes Thank Flag Link Thu Sep 2, 2010
FHA changed their guidelines to EXCLUDE most of the condo complexes in the valley.

I agree with my peers. Your best bet is most likely to go to a hard money lender.

You will pay a higher interest rate, but with the AMOUNT of money you are borrowing the payments
will still be affordable.

Hope this helps.

Terry S. Smith
Scottsdale Specialist
44 Year AZ Resident
DPR Realty LLC
8341 E. Gelding Drive
Scottsdale, AZ 85260
Direct (602) 763-1858
Fax 1-888-315-2680
0 votes Thank Flag Link Sat Aug 21, 2010
A private lender might also do that loan (under certain circumstances), but you'd probably have to go through an intermediary.
0 votes Thank Flag Link Sat Aug 21, 2010
Try Traci Gratzek at Bank of America. Her number is 602-762-7676. She has done loans that small for my clients, however the problem may lay with that particular condo complex. Many of them are not financeable at all due to condition of HOA or occupancy levels. Then your only alternative is hard money lenders
Tom Chase, Designated Broker
TJ Chase Realty Group, Inc. (480) 421-9751
0 votes Thank Flag Link Sat Aug 21, 2010
This is correct, It actually costs money to do this small loan, There is a long story to this but basically federal laws trigger a limitation to the costs. The smallest loan still costs $3900-4300 at a minimum. The lender is then forced to reduce the fees by actually paying them.. It doesn't make sense.

However, I heard that Chase might do them (Not sure how) but call them.
0 votes Thank Flag Link Sat Aug 21, 2010
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