Min conventional loan amount

[Henry Jenkins]

I am in the process of locating a property to purchase. I must say that I am excited. Before my search I wanted to get pre-approved for a loan. I was pre-approved through Quicken loans for $100,000 investment loan with 25% down. Although I had that limit I wanted to purchase something more around like $50,000 and finance about $35000. I wanted the security of more reserves and to buy another property sooner.

I followed up with my loan specialist to find out what is the lowest amount I could get financed. I told him my plan of $50,000. He said that could not happen. He stated the lowest amount they could finance was about $67000. He stated that Fannie Mae/Freddie Mac will not allow them to finance anything lower due to it being considered a predatory loan.

My question is have you heard of this? I have seen threads and articles of people financing homes for as low as $35,000. Maybe the problem was it wasn't a conventional loan. I appreciate your feedback. Thanks