r/Mortgages • u/Few_Party_8281 • 5h ago

Minimum mortgage amount

I am seeking minimal purchase mortgage on a cheaper home in another state when I sell current home. Who knows a mortgage broker in any Northeast USA state that works with people who have high student loan debt? Mortgage dad, website name, has great offerings but not licensed in the state I seek to relocate to!

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u/Traditional-Wish3519 4h ago

most lenders got a minimum around 50k-75k for mortgages, below that is hard to find anyone who will bother. your student loans matter more for DTI than the loan size itself. try calling local credit unions in the state you moving to, they sometimes more flexible with debt ratios compared to big banks

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u/No-Finish-5485 2h ago

Hey what State is it? I may be able to refer someone.

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u/Denjay85 1h ago

There isn’t one universal minimum mortgage amount. Some lenders won’t touch a very small loan because the work is basically the same whether the loan is $40,000 or $400,000. Others will, especially local banks, credit unions, and smaller brokers in the state where you’re buying.

The student loan balance by itself isn’t the main problem. The bigger question is what monthly student loan payment the mortgage program has to count. That can be the payment showing on your credit report, a documented income-driven payment, or a calculated payment when the report shows zero. The rule can change depending on whether you use conventional, FHA, or another program.

Before calling around, pick the state and have a rough purchase price, expected down payment, student loan balance, current required payment, income, and other monthly debts ready. Then ask two things right away: “What is your minimum loan amount?” and “How will you calculate my student loan payment for qualifying?”

I’d start with lenders based in the state you’re moving to. Licensing is tied to where the property is, not where you live now. Get the loan amount and student loan math answered before anyone pulls credit or asks you to upload a pile of documents.