Corinne Guest, Barrington Lifestyles (Corinne Guest, REALTOR® | Barrington Realty Company)

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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I don't know! Calling all lenders...

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

George Souto 

John Meussner 

Jan 25, 2018 09:28 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I didn't even know there was one!  I'm going to use my lifeline here and call John Meussner!

Jan 25, 2018 09:37 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have not clue.  I am certain there is nothing for sale in my market that would be anywhere the minimum. 

Have you considered an FHA  203K renovation loan? 

Jan 25, 2018 09:21 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I have several that are less than this.

Jan 25, 2018 06:27 PM
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience
Corinne:  (and Debe)
 
Appreciate the shout out on the question ...  it's something that crops up with some regularity, so obviously clients and agents alike face this issue fairly often.  Hope what I add here helps provide some insight ... and maybe some direction as well.
 
As an Originator at American Portfolio Mortgage Corp., I have no set minimum loan amount dictated to me.  Why the issues or challenges arise, is that loan services and GSEs (Fannie Mae and Freddie Mac) have a limited "appetite" for these loans.  Market demand is stronger during some periods versus others.
 
That said, I through APMC can offer Portfolio Loans (loans which are funded and kept in-house rather than "sold").  Portfolio Loans have totally different criteria for Approval and are considered on a case-by-case basis. They are either Approved or not of their own strengths and merit.
 
It's hard to really nail down a set definitive answer to your question.  My best advice is for any agent or borrower having this need, inquire with their local Lender as to the availability ... and then likelihood of ... receiving an Approval for a Loan in these lower amounts.
 
As I read the feed I noted your input about a HELOC ... and it's my opinion that this scenario is exactly why HELOCS were invented.  I would recommend that your client inquire with their bank about using a HELOC as a tool to fund any post-Closing projects.  In fact, a mortgage would be unnecessary from a cost standpoint ... and the home equity line can serve as a way to fund projects as they go, paying interest only on actual funds used/borrowed. 
 
Again, hope that helps a bit.  If you have questions ... please let me know.  
 
Gene
Jan 25, 2018 01:17 PM
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Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

There is no minimum mortgage. There is a Federal law however that limits the cost a licensed lender can charge a borrower for rate and total fees. The law appears counterintuitive or not good for a poor person or a Borrower who only needs a small mortgage

 Any first mortgage with an annual percentage rate (APR) that is more than 6.5 percentage points higher than the average prime offer rate.

• A first mortgage of less than $50,000 that is secured by a personal property dwelling (such as a manufactured home) and has an APR more than 8.5 percentage points higher than the average prime offer rate for a similar mortgage.
• A second mortgage with an APR more than 8.5 percentage points higher than the average prime offer rate for a similar second mortgage.
• A loan of less than $20,000 with borrower-paid points and fees that exceed the lesser of 8 percent of the loan amount or $1,000.
• A loan of $20,000 or more with points and fees that exceed 5 percent of the loan amount.

BUT HERE IS THE PROBLEM- 

The flat fees to process a loan - escrow, title, tax service, flood cert, recording, appraisal, MERS, Underwriting, processing, and the hundred pieces of information all have a floor cost say $2000 to $2800- to explain the economy of scale doesn't make sense doing a $50000 loan the flat fees are the same as a $200000 loan. Our government forces the lender/ or in my case the mortgage banker/ PAYS the minimum costs and goes in the hole negative to do a small loan. THEREFORE many lenders make up their own rules that they just don't do a loan under X dollar amount 

Sometimes it makes sense to offer a HELOC which might have little or no fees

AVERAGE PRIME OFFER RATE (APOR)
10 Yr Fixed 3.71
15 Yr Fixed 3.21
20 Yr Fixed 3.21
30 Yr Fixed 3.98
5/1 ARM 3.39
Jan 25, 2018 10:31 AM
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Thanks for the mentions everyone!

It’s investor by investor - some have low minimums but you can run into issues with high cost laws and hold ups (regulations cap many loan program’s lender fees to “x”%, so on a small loan, a standard lender fee can raise high cost red flags and stick the lender (and borrower) with all sorts of headaches.

To avoid high cost headaches most lenders I’ve seen set their minimum to $50k (where mine is) or even $100k.

Jan 25, 2018 09:55 AM
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Debe Maxwell, CRS has the answer! 

Occasionally a favoriite lender will do you a favor but I do not think it is fair to ask.

Jan 25, 2018 09:35 AM
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JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

We have a lender that will go down to $100,000 and another to $75,000. Any lower than that you run into the problem of a high cost loan. 

Jan 25, 2018 09:01 AM
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Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

You have great responses here Corinne Guest, Managing Broker 

Jan 25, 2018 08:09 AM
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Depending upon the lender there is no minimum. That said, however, the cost of a loan under $100,000 can be very costly!

Jan 25, 2018 07:50 AM
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Talk with your favorite trusted local mortgage loan officer.

Jan 25, 2018 07:48 AM
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Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

I refuse to work with anyone who would ask me that question! 

Jan 25, 2018 06:33 PM
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Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

I don't think it has changed any in our neighborhood.

Jan 25, 2018 02:42 PM
Rainer
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Harjeet Bhatti
FITH THIRD BANK - Chicago, IL
Home Mortgage Consultant 25 States

We do not have any minimum loan amount. So far I have done up to $30000 loan amount.  MB has pretty good policy for lower loan amount. 

Jan 25, 2018 12:21 PM
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I like Debe Maxwell, CRS answer

Jan 25, 2018 11:43 AM
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

I didn't know there was a minimum but have enjoyed reading the responses.  Learn something new every day on AR.

Jan 25, 2018 11:09 AM
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Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Varies per lender 50 to 75K. 

Jan 25, 2018 10:28 AM
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Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I believe it's around $40,000 in our area (Wisconsin)

Jan 25, 2018 10:11 AM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

The lenders I deal with regularly do not like to go below $50K, but there are some who would do as low as $35K for clients of mine because I'm a good source of referrals to them. I hate to ask.

Jan 25, 2018 10:05 AM
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Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I'll be watching for the answer from lenders....

Jan 25, 2018 09:40 AM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Corinne,

Many gave you the answer.  I am sure each market differs.  A

Jan 25, 2018 08:47 AM
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

40 or 50K credit union. Most banks or brokers are not interested.

Jan 25, 2018 08:18 AM
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I'll defer to Mortgage Expert Jason E. Gordon for this one.

Jan 25, 2018 08:14 AM
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The minimum mortgage is solely at the descretion of the lender.

There is a break even  level based on the structure of the orgainzation and that number for lenders like Wells Fargo is closer to 125K.  So they are actally losing money on the transaction at lower amounts, but they still do those ultra-low mortgage amonnts. 

Jan 25, 2018 07:47 AM
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I believe Commerical Banks must entertain ALL

Jan 25, 2018 07:46 AM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Didn't realize there was a minimum... Individual banks might have a minmum as a matter of policy, but basically as long as the collateral (property) covers the loan comfortably, there should not be an issue. 

Jan 26, 2018 07:04 AM
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I think it varied by lender.

Jan 26, 2018 05:35 AM
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Debe Maxwell, CRS nailed this one!

Jan 26, 2018 04:23 AM
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Depends upon the lender.

Jan 25, 2018 09:28 PM
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I have no idea, since the lowest one can go in CA is probably way above 50k.

Jan 25, 2018 09:25 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Corinne Guest, Managing Broker - I am sure we have in-house experts here....

Jan 25, 2018 09:14 PM
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We can get mortgages under thast amount in my area as needed. 

Jan 25, 2018 07:44 PM
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have had buyers wanting a $50K loan, and was tough to find a lender that would do it around Denver.

Jan 27, 2018 06:15 AM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

My local bank did one for me at $23,500

Jan 26, 2018 05:24 PM
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I would think that as a broker you would keep up with that.

Jan 25, 2018 03:39 PM