Tiny Mortgage, Not House: Finding A Loan Officer Who Works With Small Loans

If you are looking to get financing for property, you may be looking to find loan officer who can help originate a loan for you. Loan officers will have the most information on interest rates for consumer loans may be able to get you an approval. If you are looking for a small loan rather than a larger loan, you may actually find that you have trouble getting approved and receiving a smaller loan amount. Here are some ways that you can go about finding someone to approve you for a smaller mortgage.

Look for 90% financing

If you are interested in a home or a residential lot that will be inexpensive, you may find that banks are less willing to offer a loan. This could be that they feel the property isn't worth the amount of money that they will make off of the loan. Some banks may only be interested in assets that bring in a specific amount of money over time. For this reason, seek out a bank that will offer you 90% financing or above. Though most traditional loans will ask for 20% down, for a smaller loan, you may be able to negotiate a 90% loan amount. This will increase the amount of the loan and the amount of money the bank makes in interest, making it worth their while. 

Work with an officer who specializes in small loans 

If you want to have an easier time finding a small mortgage, you will need to find a loan officer who has been through this rodeo before. Look for loan or mortgage officers who have been known to work with mortgages that are under $100,000. Loan offices who work on these types of loans will often advertise this as a separate service. If you cannot find advertisements in this area, you should stop by a smaller bank or credit union. Smaller lending institutions are more likely to work with a range of mortgages, depending on their resources. 

Ask in low cost neighborhoods

If there are neighborhoods within your city that sell homes that are at or under the $75,000 mark, this is ground zero for finding the information that you need. Ask around in the neighborhood for banks that offered inexpensive loans for less expensive houses. Ask for specific loan officer names to be sure that you will be connected to someone who can give you a low cost, low amount mortgage.