Finding a small mortgage loan can be hard work. Many lenders disclose their maximum mortgage amount available, but not their minimum, so finding the right loan can involve a bit of research.
If you compare lenders, you’ll find there isn’t necessarily a single lowest standard mortgage amount. Instead, different lenders have different minimums. Here’s what to know.
What Is the Minimum Mortgage Loan Amount You Can Borrow?
When it comes to mortgage types, each lender offers different products. Researching the market will show you there’s a lot of variation in interest rates, closing costs and requirements to qualify.
But finding a lender that offers small mortgages can present a special challenge. When it comes to loan amounts, most lenders don’t disclose their minimums. Generally speaking, you may have trouble finding a mortgage below about $60,000, unless you’re searching for a specific, unconventional loan type (more on that below).
While mortgage minimums vary, qualification requirements are relatively consistent across lenders. As you search for and prepare to apply for the right loan, keep these common requirements in mind:
- Credit score: There’s no hard-and-fast credit score that qualifies you for a mortgage, but many lenders require a minimum score of 620 (certain government-backed mortgages have lower requirements). The higher your score, the better the terms you’ll qualify for.
- Work history: Lenders want assurance your income is stable enough to cover your loan payments over the long haul, so qualifying may include a requirement that you have proof of steady employment. Some mortgage lenders even require a two-year record of work for your current employer or in your current field.Leer más »What’s the Lowest Mortgage Amount You Can Get?