Whats competitive hml rate for < 50k?

[Justin B.]

I noticed its pretty hard to find a hml that will lend less than 50k, so for the investors out there who have found those deals before, what was the rate and point structure like? How bout the terms?

Not sure if you have seen higher than avg points and/or rates with maybe interest only or no interest payments.

Appreciate any insight BP!!

[Jay Hinrichs]

One of the issues in certain states with sub 50k loans is usury rates.

The other and I am a HML is as stated there is just as much work in a larger loan as well as smaller.

And the other issue is the collateral sub 50k homes or loans at 20k are usually In areas that only locals work and the values are suspect on the ARV side.. As the areas are just full of low end rentals. If that all makes sense.

that all said I carved a NIche for myself in the low end market. loans at 30 to 60k.. But I have minimum income requirements. I make 5k per loan in loans fee's period.. other wise its not worth the time effort or RISK. The vendors I deal with are very experienced and move usually 3 to 10 properties a month in their market. They already have resale channels establish.. PM well under control and they control rehab.

JLH