The calculation of the APR is part of the Truth-in-Lending Act (TILA) which is administered by the Federal Reserve Board. Questions concerning TILA as well as Section 32 (high cost loan disclosure) may be directed to the Federal Reserve Board at (202) 452-3693.
I believe that Section 32 states that the fees associated with the financing of a loan cannot exceed 8% of the loan amount being financed? I have to double check that as I have never been out of compliance.
I would look to a credit union for financing such a small loan amount or for your borrower to secure a note loan based on his credit.
Hope my answer helped. Please let me know if I can be of assistance to your further.
Sr. Loan Officer
American Liberty Mortgage
I have never done a loan that small, but would take a look at it to earn potential future business. Feel free to give me a call at 303-305-9400 if you would like to discuss.
I would suggest calling Matthew Hibler with CB Home Loans 3034091300 Or also Blase Deroco with Ideal Home Loans
3037833983 just tell them Mark Kinslow II sent you to them and they will take great care. I hope this helps!