Mortgage on a rental property
I purchases a foreclosure home for $36,000 cash, and put about $40,000 in materials into fixing it up. Appraised value is around $115,000. Because I couldn't get a loan for the property initially (wasn't livable) and put the materials on credit cards, I want to get a mortgage on the property now that it has been rented for a year. The property brings in $1130 a month, tenants pay all utilities. I really only need to get a loan for the $40,000 in credit card debt, but the mortgage company insists that I must pull $75-80,000 out, assuring me that I can make a principal payment back if I don't want the extra funds for anything else. Does this make any sense?? by kkzacharias689 from , Wisconsin. Apr 15th 2014
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Assuming everything else is OK, you should be able to get the loan you need. Many lenders have minimum loan amount requirements... Especially below $50,000, so you may have to shop around a bit. But this lender clearly doesn't have your best interests in mind. Find another lender (we don't lend under $50k either) www.WI-MortgageBroker.com
Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions
Sounds like the lender you are currently working with has a min. loan amountrequirement. Contact your local community bank, as long as you qualify you shouldbe able to get the loan that you want-
Dale Dikes (addikes@aaabanking.com)
#55 ranked lender in Michigan - 5 contributions
Most "mortgage lenders" have a minimum loan amount, including my bank ($50,000). Your local community bank may be willing to lend you the $40,000 you're looking for. Good luck!
SEAN WRIGHT (LANDMARKMORT)
#6 ranked lender in Wisconsin - 50 contributions
I can do a smaller loan if you still need assistance. Call me to go over the details, or click my link and you can do an application online.I just completed a similar mortgage for a client and the loan was only $39,000. There is not a lot of $$$ in this type of transaction, so some lenders won't be interested.
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
No it doesn't unless the lender you are working with has a minimum loan requirement. I would call another lender.
Yvette Jenkins (Yvette)
#39 ranked lender in Wisconsin - 21 contributions
Sometimes lender have a minimum loan amount or they will charge an additional fee for smaller loan amounts. I work for Johnson Bank, www.johnsonbankmortgage.com/yjenkins, and we will allow you to do any loan size without charge additional closing costs. The good news is that you have owned the property for 1 year which makes the cash out refinance possible since it is now seasoned. Yvette JenkinsJohnson BankNMLS ID 455918
Jason Vondrak (jvondrak)
#220 ranked lender in California - 1,741 contributions
Some lenders require a minimum loan amount. Try shopping around for a different lender. Some of the other lenders that responded to your question sound like they can help you out.
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