Advice Needed: Loan Options for SFH under $120K

[Michael Moya]

Hi Bigger Pocket Community - Looking for some insights and advice on loan options for single family homes under $120K. I'm looking to purchase a single family home as an investment property (buy and hold strategy). I only have enough funds for a 20-25% downpayment and was looking to do a DSCR loan to cover the rest. I do not have a traditional W2 job so I can't pursue the typical conventional loan or a FHA since I don't have income (hence the DSCR route).

However, I've seen that most DSCR lenders do not lend if the loan amount is less than $100K. Does anyone have any creative financing advice or any insights? Thanks so much!

[Brittany Minocchi]

There are definitely options for less than $100k, just depends on how much lower - $75k is doable but less than that gets a liiiiiittle tricky (although still doable in some cases). Costs will seem high relative to the loan amount on these smaller loans, $5-6k in lender fees isn't uncommon. I'm in Ohio and we see those lower loan amounts pretty regularly. Happy to chat, feel free to reach out!