Lender is recommending 2nd home loan when I asked for Vacation…

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Lender is recommending 2nd home loan when I asked for Vacation…

Jason Lemus
Member since 2021 · 26 posts · 4 votes

Looking to invest in Neveda & a lender my realtor recommended me is telling me I’m going to get a 2nd home loan, I had asked for a vacation home loan. Any advise ? He said at around 3-4% interest rate. Doesn’t seem bad to me but I don’t know much since this would be my first OOS rental. Any help would be much appreciated

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
5y

The 2 are synonymous 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    The 2 are synonymous 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    2Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Jason Lemus all things constant, your rate will be better...maybe your down payment. If you are using a non-occupied conventional product you will likely be at 75% LTV...maybe 80% for a SFR...I would at least explore the options...sounds like your agent is looking out for your best interest.

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  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Sorry, I've never heard of Neveda so can't give advise......

    1Reply
  • Jason Lemus
    OP
    Member since 2021 · 26 posts · 4 votes
    5y

    @Eric Gerakos oops Nevada*

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  • Alan Lacey
    Lender · Grand Rapids, MI · Member since 2019 · 175 posts · 82 votes
    5y

    @Jason Lemus second home loan is vacation loan, but you are indicating that it will be a rental which is not the same thing. Second home/vacation loan has to be used primarily for individual use for first year you own the home.

    1Reply
  • Jason Lemus
    OP
    Member since 2021 · 26 posts · 4 votes
    5y

    @Alan Lacey thanks for the explanation, so 2nd home loan is a good option in that case right? Thanks so much

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  • Brendan H.
    Real Estate Agent · Denver, CO · Member since 2015 · 125 posts · 43 votes
    5y

    @Jason Lemus If you qualify, the second home loan will get you a better interest rate with a lower down payment than a rental prop loan. After you close, if you happen to change your mind and decide to rent it out on occasion as a vacation rental, that’s your prerogative.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    @Jason Lemus A 2nd home and a vacation home are the same thing….a loan for these has a minimum amount of time per year required that You will occupy it, you will sign documents to this effect, they are not intended for purchasing a straight rental. Proceed at your own risk. 

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