Loan Minimum too low for most lenders/brokers

I hear this story time and time again about borrowers being refused a loan because they are trying to finance a loan less than $50,000. There are 2 reasons why this happens

1. Lenders have guidelines where financing a loan must meet minimum loan requirement due to risk and cost.
2. Mortgage Brokers work strictly on commission and most won't work on a loan that doesn't pay out well.

This is indeed very frustrating for consumers especially the borrowers who really need to refinance to stream line debt or get cash out to help out their current situation. I do understand their needs and I believe there are answers to this case.

• My company I work for has no minimum loan amount, it also had to do with the Loan Officer - Broker as well. I personally am committed to every single borrower who needs my help. I don't look at them as a one time deal commission structure, I look at them as life long clients. ( I want you as a client lets get started) If I do the loan for them now the possibilities are endless for referrals and future financing that might be even more than less than 50k now!
  

• Another alternative is to do an end run on the minimum loan requirement by getting a home equity loan instead of a first mortgage. An advantage of a home equity loan is that it typically has lower closing costs than a new first mortgage. A disadvantage is that home equity loans and home equity lines of credit have higher interest rates than the typical first mortgage.

• A home equity loan is likely to be the better choice of the two with its fixed interest rate and loan payments that cover both interest and principal repayment.