"why are the finance companies not taking loan apps unless they are over 100k?"

Lending answer:

Mainly because with state and Federal caps on fees, banks and lenders have very little -if any- profit in small balance loans. Fee caps are calculated from the amount of the loan. However, as Douglas and Tino pointed out, many banks and credit unions are delighted to provide the small balance financing you need. J's suggestion about seller financing is excellent for small balance loans. One never knows until one asks.

Paul,

I am a Mortgage Banker here in Illinois. Email me with any of your financing questions at Tino.Muratore@gmail.com.

Thanks,

Tino

Paul,
Take a look at preforeclosure. Another option, and one that is frequently overlooked and not discussed is seller financing. Financing of investment property through a lender can cost 5%-7% in lender fees, and this is in addition to your requested loan amount. I had a client in a similar situation you are in and I discussed seller financing with the owner of the property. The seller had no clue that this would be an option for both him and the buyer. Everything is negotiable with the down payment and the terms. It's a creative option that can benefit both buyer and seller and your hard-earned dollars can go into the property not in fees.

Doug. No one is going to want to tell you this but I will. The reason most people do not want to do that deal is because at the low of a loan amount, it is almost impossible to make any money off of the deal. Illinois has a 5% cap on fees and costs. At 50k... After title, appraisal, lender fees etc. There is no more room for points. No Points. = a free loan. Most people aren't going to do that.