Small Home Loans (Under $50,000)
Small Home Loans (under $50,000) can be a little more difficult to find but they are not necessarily out of the question as long as you’re willing to put in a little extra work and perhaps pay the higher rates that are associated with a smaller mortgage.
To find small home loans it is best to look into smaller institutions. If you have no luck with the big name banks talk to your local banks and credit unions. It’s especially helpful if you have an existing relationship with a community bank or are already a member of a credit union to negotiate a small home loan. Loyal customers who have proven their fiscal responsibility can have access to unconventional loan options from these types of financing institutions.
It may take multiple meetings with small-mortgage lenders and community bank/credit union representatives before you find a lending institution that is willing to provide you with a loan. Make sure they carefully review your financial situation but be wary of having your credit run an excessive number of times.
The Illinois Credit Union League website provides a comprehensive list of available Credit Unions by city: