Mortgage Minimums?

[Phillip McCray]

Hello BP, my name is Phil, I'm new to the world of Real Estate investing. I have been doing a lot of reading about the industry, listening to podcasts and just really soaking up all info I can.

I'm interested in doing some rehabs or new builds in "low income" areas. Wondering what, if any, is the minimum amount most lenders will write a mortgage for. I.E., if I were to rehab a home and put it on the market for 60, 70, or 80,000 would a "qualified" buyer have a problem getting a mortgage loan for that amount??

[Andrew Syrios]

We once got a mortgage for $39,000. That being said, many lenders might shy away from smaller loans (I know some national lenders such as B2R have a minimum of $50,000). But that doesn't mean they're not out there. I would think at the $60-80,000 mark, there should be enough lenders for a borrower to be able to find a lender if they are qualified. Just remember, at that price point, most of the buyers are investors.