Why Minimum Loan Amounts?

[Joe Giusto II]

I have heard that I will not be able to get a loan for under 50K on investment properties in MD.  Can anyone give me some insight on why that is, even that the properties have good cash flow? 

[Jesse Goldberg]

@Joseph M. is right on the money. Credit unions are a great place to find these smaller loans depending on your credit score, and they offer great rates and options.

Hard Money Lenders also tend to have minimums in the 75k-100k range because of the highest risk and lower benefit to the lender. That being said, there are definitely some out there that may do smaller properties, but they come at a cost with origination and broker points, closing costs, lenders fees, etc. 

That being said, if you're not eligible for a bank loan from your FICO, finding a reputable local HML in your area that will do the $50k, and you have the option of refinancing later when you are bank loan eligible.