5,230,113
I don't know! Calling all lenders...
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
George Souto
John Meussner
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John Meussner
Fair Oaks, CA
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Lyn Sims
Schaumburg, IL
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Diana Dahlberg
Pleasant Prairie, WI
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Anthony Acosta - ALLAT...
Atlanta, GA
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Barbara Todaro
Franklin, MA
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Margaret Rome Baltimor...
Pikesville, MD
1,502,998
I didn't even know there was one! I'm going to use my lifeline here and call John Meussner!
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John Meussner
Fair Oaks, CA
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Inna Ivchenko
Encino, CA
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Joyce Marsh
Daytona Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Lyn Sims
Schaumburg, IL
3,345,091
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?
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Lyn Sims
Schaumburg, IL
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Diana Dahlberg
Pleasant Prairie, WI
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Anthony Acosta - ALLAT...
Atlanta, GA
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Debe Maxwell, CRS
Charlotte, NC
6,393,494
I have several that are less than this.
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Bob Crane
Stevens Point, WI
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Debe Maxwell, CRS
Charlotte, NC
1,291,481
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Gabe Sanders
Stuart, FL
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Debe Maxwell, CRS
Charlotte, NC
417,221
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
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Gene Mundt, IL/WI Mort...
New Lenox, IL
1,076,551
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.
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Debe Maxwell, CRS
Charlotte, NC
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Lyn Sims
Schaumburg, IL
3,854,909
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.
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
472,114
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.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
2,220,654
You have great responses here Corinne Guest, Managing Broker
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
5,216,409
Depending upon the lender there is no minimum. That said, however, the cost of a loan under $100,000 can be very costly!
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Debe Maxwell, CRS
Charlotte, NC
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Richie Alan Naggar
Riverside, CA
7,836,139
Talk with your favorite trusted local mortgage loan officer.
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Anthony Acosta - ALLAT...
Atlanta, GA
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Debe Maxwell, CRS
Charlotte, NC
86,514
I refuse to work with anyone who would ask me that question!
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Debe Maxwell, CRS
Charlotte, NC
392,768
I don't think it has changed any in our neighborhood.
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Debe Maxwell, CRS
Charlotte, NC
182,915
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.
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Debe Maxwell, CRS
Charlotte, NC
4,272,548
2,178,603
I didn't know there was a minimum but have enjoyed reading the responses. Learn something new every day on AR.
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Debe Maxwell, CRS
Charlotte, NC
1,844,301
679,404
I believe it's around $40,000 in our area (Wisconsin)
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Debe Maxwell, CRS
Charlotte, NC
5,104,931
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.
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Anthony Acosta - ALLAT...
Atlanta, GA
5,583,278
I'll be watching for the answer from lenders....
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Anthony Acosta - ALLAT...
Atlanta, GA
5,772,575
Corinne,
Many gave you the answer. I am sure each market differs. A
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Debe Maxwell, CRS
Charlotte, NC
1,239,901
40 or 50K credit union. Most banks or brokers are not interested.
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Debe Maxwell, CRS
Charlotte, NC
1,543,823
I'll defer to Mortgage Expert Jason E. Gordon for this one.
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Debe Maxwell, CRS
Charlotte, NC
921,504
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.
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Debe Maxwell, CRS
Charlotte, NC
2,182,552
I believe Commerical Banks must entertain ALL
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Debe Maxwell, CRS
Charlotte, NC
900,128
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.
4,800,082
3,071,489
2,684,109
1,622,432
I have no idea, since the lowest one can go in CA is probably way above 50k.
4,319,419
Corinne Guest, Managing Broker - I am sure we have in-house experts here....
3,988,007
5,868,554
I have had buyers wanting a $50K loan, and was tough to find a lender that would do it around Denver.
3,986,258
1,712,676