My brother and I have been searching for a vacation property for a while now. We have narrowed down a few. We are looking in several states including CO, AZ, and UT.
The goal with this property is to buy something big enough we can take the family to a few times a year, and be able to air bnb it for a portion of the year to help cover costs.
My question: Can we get a 10% down home loan if there are multiple people purchasing it? Or is this going to turn in to an LLC type of deal with 25% down? Can anyone recommend a lender to speak to in these states that would deal with something like this?
I am a Realtor and Investor in Phoenix and have some connections with great lenders. Let me know if you would like their contact information so they can help you out!
@Jeremiah Junker - We are a local Mortgage Broker in Scottsdale. Feel free to reach out if you have any other questions on this or other scenarios. First, a second/vacation home purchase can be done with a min of 10% downpayment. And one of the specific rules for a home to be considered a vacation home is that you use it for personal use for some portion of the year. While its not in use, you can AirBnB it, that is allowed. Multiple people, still 10% down.
The problem is that for all loans funded/closed after 3/14, the rates on second/vacation home purchases are going to jump up massively. There are new price hits going into effect, from Fannie Mae/Freddie Mac. So, a 10% down scenario will be about 0.75%-1% higher in rate, purely based on those price hits. Can you do it? Absolutely! But, know that the interest rate is going to be high due to these new price hits.
If you can land a deal in a few days and close it before 3/14, you are good to go with the current price adjustments.