Home Buying in Chicago>Question Details

Daman, Home Buyer in Chicago, IL

Will any lenders in Chicago do a loan as low as 30-35k?

Asked by Daman, Chicago, IL Fri Aug 10, 2012

I am looking for a small mortgage of around 35k. I have good credit, income and down payment, and have seen that there are decent condos selling in Chicago for between 20-50k. So I went to Chase, where I do most of my banking, and was pre-approved for 30-50k. At that time I was told they could lend as low as, but no lower than 30k. However, after I found the place I wanted for 35k they turned around and told me they cannot loan any amount under 50k. Another bank gave me an even higher minimum, but I want only a small one. Can you help or point me in the direction to get such a small loan? I have read that where major lenders will not do these loans, it is possible to get them from local community banks, credit unions or stock brokerage companies.

Please let me know if you can help or offer any insight,

Thanks,

D

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Answers

11
Try Chase again - they are obliged to lend in all communities in which they have a presence, so that is effectively ALL of Chicagoland. Also, a small community bank should be able to provide you with funding.
1 vote Thank Flag Link Fri Aug 10, 2012
A small community bank, such as Bill refers to, is often looking for small "community" loans to make. A Bank (vs. a mortgage lender) is not held to the same rules, and can often make such a loan.
Flag Tue Aug 21, 2012
That's an interesting point, I will look into that. But even if they wanted to, the question is how would they circumvent the predatory lending laws that Alan May (below) refers to?
Flag Fri Aug 10, 2012
I am a Mortgage Banker at Standard Bank. We will lend on small loans. Let me know if I might be able to help you. 312-307-2787. NMLS #230092
0 votes Thank Flag Link Fri Aug 24, 2012
Small local community banks are not held to the same predatory lending rules as a typical mortgage broker. Oftentimes, those small community banks are seeking opportunities to make those small local loans.
0 votes Thank Flag Link Tue Aug 21, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
do you want someone to throw you in a loan or do you need direction so you can make best all around strategic deal? 312 878 4474 Real estate brokers, financiers, consultants
233 s wacker drive, we specialize in reaching your real estate goals
0 votes Thank Flag Link Fri Aug 10, 2012
Wells Fargo will. Todd Olson todd.olson@wellsfargo.com
0 votes Thank Flag Link Fri Aug 10, 2012
go to the banks in the neighborhood and ask.. do your homework and get to work.
0 votes Thank Flag Link Fri Aug 10, 2012
Judging by your VIP status, I'm sure your other answers are better than this one. In this case, however, please note that you did not actually answer the question. I am in fact doing the work, posting the question on here was part of the work, and reading (and responding) to your condescending pep talk wastes precious seconds out of my work day. Now Joseph, get to work and do a better job while you're at it.
Flag Fri Aug 10, 2012
The problem is not that they're not wiling to do a small loan, such as you describe, but because of Cook County's predatory lending laws, the fees involved in such a small loan exceed the numbers allowed, and cause the loan to become a "predatory loan".

They just can't be done.
0 votes Thank Flag Link Fri Aug 10, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
I have a lender that does do loans this small. I would be happy to pass along their information.
0 votes Thank Flag Link Fri Aug 10, 2012
My web site has a couple of lenders who in theory, could sdo it, but the excessive costs involved apparently do not make it worth while.
0 votes Thank Flag Link Fri Aug 10, 2012
Daman,

I have been told by lenders that due to the new anti-predatory lending laws, loans that low are no longer possible. These laws set a maximum for the loan fees as a percentage of the loan value. The problem is that loan origination and apraisal costs don't go down just because the value of the property are lower.

Best of luck,
Ivan Sagel
0 votes Thank Flag Link Fri Aug 10, 2012
Right. But what about private lenders or investors? Couldn't there be some way to borrow the money contingent on the lender being able to put a lean on the condo once, or while, it is purchased?
Flag Fri Aug 10, 2012
Try Wells Fargo. I know a few people that got financed with them below $40k.
Web Reference: http://Www.ursulashine.com
0 votes Thank Flag Link Fri Aug 10, 2012
thanks, I'll check'em out.
D
Flag Fri Aug 10, 2012
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