Often, if there is a significant discount, it's because the seller or bank knows that the property is too beat up to get institutional financing, meaning that discount will be offset by you having to pay 4 points upfront for a hard money loan at 12%. 

So, after 2+ months of being told there would be no problem getting a mortgage but would need to be a commercial mortgage with 30% down, we heard today from the credit union  - we were turned down.Looking for suggestions on a financial institution that will give us a mortgage for $45k - $50k for the rental property we have under contract in Pontiac.We are Canadian & already own 2 sfr income properties in Warren, Mi.

We both have 700+ credit and will have worked at our W2 jobs for 2+ years.Location: Lynn, MA, or North Shore Boston.

Do both loans need to be from the same institution? 

These are financial institutions that I like to describe as "E*Trade with different paperwork". 

(D) "Institution of higher education" includes all of the following:(1) A state institution of higher education, as defined in section 3345.011 of the Revised Code;(2) A nonprofit institution issued a certificate of authorization under Chapter 1713. of the Revised Code ;(3) A private institution exempt from regulation under Chapter 3332. of the Revised Code, as prescribed in section 3333.046 of the Revised Code.(4) An institution with a certificate of registration from the state board of career colleges and schools under Chapter 3332. of the Revised Code that is approved to offer degree programs in accordance with section 3332.05 of the Revised Code.

@Greg M. A

@Jason Ma 10% is going to be hard to find here.

This also happens with bridge loans from large, institutional debt funds.

We have institutional operators we partner with that have $500K minimums with tremendous track records.