Home Buying in Philadelphia>Question Details

jalberto, Home Buyer in Philadelphia, PA

Lenders don't like to lend for homes that are worth less than 100,000. Is this true?

Asked by jalberto, Philadelphia, PA Sat Aug 18, 2012

An RE agent had told me that lenders don't approve loans if they are less than 100K because they don't make money on those loans. is this true?

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5
The agent who told you this is either confused or ill informed. As long as you'r borrowing at least $50,000 most lenders will consider you though they may charge slightly higher fees. I haven't found any willing to loan below $50,000
1 vote Thank Flag Link Sat Aug 18, 2012
Not true, not all companies.

You will probably pay more in either fees or rates because of the low loan amount but it can be done.

We can help as a mortgage broker.

Call me at 2152389400 or email me fred@usloans.com

Fred Glick NMLS #133975
U S Loans Mortgage LLC #51022
Web Reference: http://usloans.com
1 vote Thank Flag Link Sat Aug 18, 2012
With most of the lenders I deal with, they don't like to go below $40,000. The rates are no different though.
0 votes Thank Flag Link Tue Aug 21, 2012
As everyone here is saying that isn't true for all lenders. A lot of lenders will give a mortgage for a home for less than 100K.
0 votes Thank Flag Link Sat Aug 18, 2012
As Larry says, the cutoff seems to be $50,000, not $100,000. The agent's reasoning was correct: The lower the amount of the loan, the less they'll make. It's just that the specific number isn't correct.

Check with some lenders in your area to determine precisely what the figure is, and what you'd qualify for.

Hope that helps.
0 votes Thank Flag Link Sat Aug 18, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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