Vacation Home Loan without having a primary residence?

Question

Hi everyone! While I have been listening to the podcast for some time, I am relatively new to the forums here on Bigger Pockets.

I had a question about the 10% down second home/vacation home loan I have often heard about on the podcasts. I currently rent for my primary residence, but would like to buy a short term rental as my first investment property. I know with primary residences, as little as 3.5% can be put down such as when you are house-hacking.

My question is, would I still be able to qualify for a loan product like the 10% down vacation home loan if I occupy it for x number of days? Has anyone heard of a product like this where a vacation home can be purchased without already having a primary residence mortgage?

Thanks so much!

Torrell Palmason · Answer

Hey Scott, yes you can get a second home even if you don't have a current primary.

Second homes are restricted to 1 unit properties, must be suitable for year round occupancy (the way I interpret that is STR is acceptable as you can schedule yourself to stay whenever), Must not be a rental property (LTR is out of bounds), you must occupy the property for 14 days out of the 1st year, and cannot be managed by a property manager. This leaves a lot of opportunity out there for you to get into a great market.Best of Luck!

Scott McEntee · Answer

@Torrell Palmason Thank you so much for the response. That was very helpful!